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VAT in Oman Registration Process

VAT in Oman
VAT in Oman Registration Process

Persons required to register for VAT

  • Every person who has a place of residence in Oman; conducts a commercial, industrial, professional or other activity in Oman; and has annual supplies that exceed or are expected to exceed the Mandatory Registration Threshold i.e. 38,500 OMR.
  • Any person who does not have a place of residence in Oman but is obligated to pay tax.

VAT Process

Elements of annual supplies for VAT registration 

The value of supplies for VAT registration shall include the following:

  • Value of Taxable Supplies except for supplies of capital assets.
  • Value of the Goods and Services supplied to the Taxable Person and subject to the Reverse Charge Mechanism.
  • Value of Intra GCC supplies of Goods and Services.

Value of supplies for the relevant periods 

Calculation of Annual Supplies before the effective date of the Law:

To determine the value of taxable supplies before the effective date of the Law a taxable person will need to determine which of its supplies would be taxable supplies as if the Law had effect on the date of calculation.

The actual annual supplies are the total value of supplies made during a 12-month period, which starts from November 1, 2019, to October 31, 2020, whereas the expected annual supplies are the total value of supplies that are expected to be made during a 12-month period, which starts from October 1, 2020, to September 30, 2021.

Calculation of Annual Supplies after the effective date of the Law:

The actual annual supplies are the total value of supplies made during a 12-month period ending on the last day of any month.

Registration timelines based on annual supplies

Mandatory Registration

A person who is required to register must apply for registration with the Oman Tax Authority within the dates specified in the Tax Authority Chairman’s Decision number (3/2021), as shown in the table below:

Phase Taxable Turnover (OMR) Mandatory Registration Timelines VAT Effective Date
Phase 1 Above 1 million 1-Feb-2021 to 15–Mar-2021 16 April 2021
Phase 2 From 500,000 upto 1 million 1-Apr-2021 to 31-May-2021 01 July 2021
Phase 3 From 250,000 and upto 499,999 1-Jul-2021 to 31-Aug-2021 01 Oct 2021
Phase 4 From 38,500 to 249,999 1-Dec-2021 to 28-Feb-2022 01 Apr 2022
Other Non-residents Non-residents doing business in Oman are required to register

Voluntary Registration

A person having minimum annual taxable turnover or expenses over OMR 19,250. However, the moment taxable turnover goes above the Mandatory Threshold at different phases, have to do Mandatory registration.

Submission of registration application as per the procedures

  • Registration for VAT in Oman is done on Oman’s tax authority website i.e. https://taxoman.gov.om/portal/ar/home
  • A person logins at electronic authentication service
  • Register for VAT by filling out the electronic form
  • Making sure that the data entered is correct and application satisfies all the documentary requirements
  • Apply and keep the receipt of the application from the Oman tax authority
  • The registration application is assessed by the authority. On approval, the authority will issue a VAT registration certificate containing the tax registration number and other appropriate information.

Points to be kept in Mind

  • VAT registration certificate must be displayed at every location of conducting business, such as the head office, branches, stores, and many more. 
  • The VAT identification number must be stated in all documents issued by the taxable person such as tax invoices, communications, and all other documents.
  • Non-compliance with registration provisions for VAT may attract penalties as per Oman VAT Law.