Oman Guide: What are the specific supplies for VAT in Oman?
The supply of goods for VAT in Oman without consideration is not a supply of goods if it is to advance the Taxable Person’s activity such as providing gifts or free samples, provided meeting the following conditions:
- The presents or the free samples are given to promote the sale of a product without being finally consumed unless any final consumption is necessary for the promotion of such product.
- The value of the gifts or the free samples given by the Taxable Person for VAT in Oman per recipient per Tax Year shall not exceed fifty Omani Rial excluding Tax.
- The total value of all presents or free samples provided by a Taxable Person to all recipients per Tax Year shall not exceed One Thousand Omani Rial excluding Tax.
A Taxable Person for VAT in Oman makes a Supply consisting of multiple Goods or Services or a combination of Goods and Services. The Taxable Person should determine the nature of the supply based on the actual characteristics.
What is Composite Supply for VAT in Oman?
A Composite Supply for VAT in Oman means a supply made by the Taxable Person comprising two or more Goods or Services, or any combination of Goods and Services, presented in combination with each other. A Supply shall only be treated as a Composite Supply provided meeting the following conditions:
- It is deemed commercially as a single Supply.
- The components are nearly related to each other so that these components constitute accurately and essentially a single supply that cannot be split from a financial perspective.
- All parts of the supply are essential to make the supply and achieve the economic intention of the transaction.
- The supply for VAT in Oman is made in the natural course of activity of the supplier.
- The combination of the components does not intend to avoid Tax or to increase any Input Tax refund.
The Taxable Person for VAT in Oman must calculate the Tax on the Composite Supply based on the Tax rate applicable, taking into account the economic purpose of the transaction.
What is Multiple Supply for VAT in Oman?
A Multiple Supply for VAT in Oman means two or more Individual Supplies made together by a Taxable Person to a consumer for one total consideration. These Supplies do not constitute a Composite Supply by these Regulations.
Individual Supply means a supply of Goods or Services that is a fundamental part of a Multiple Supply. It may be financially and economically separated from the other Goods or Services making that Multiple Supply. It is competent of being supplied as a Good or a Service on its own.
The Taxable Person for VAT in Oman must calculate the Tax on the Multiple Supply based on the Tax rate applicable to each supply that makes up the Multiple Supply.
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