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What are VAT Groups in Oman?

VAT in Oman
What are VAT Groups in Oman

Two or more persons conducting businesses together may register and subsequently treated as a VAT Group in Oman provided meeting the following conditions:

  • Every person has a place of residency in Oman.
  • All members are legal persons.
  • Each person is VAT registered for Oman Law.
  • One person, not dependent on membership of the group, has control over all other members of the tax group.
  • None of the persons is a member of another tax group.
  • None of the person members of the Authority operating a Special Zone.

What is the Representative of the VAT Group in Oman?

The persons in the VAT group must designate one of them as a representative of the group. Submission of a Registration Application for the tax group by the tax representative on the scheme devised for such purposes. It includes the usual details and documents for registration specified in these regulations in respect of the members of the group, in addition to the following:

  • A copy of the agreement settled between the group members to appoint a Tax Representative in Oman and evidence of the approval of the representative appointment.
  • The Tax Identification Number for each member of the group.

What is the Role of Authority in VAT Group Registration in Oman?

The Authority shall decide on the VAT group registration within a period not exceeding thirty days from completing all the details and documents. Otherwise, consider the VAT group registration in Oman rejected. The Authority may reject the registration application if it becomes evident to it with proven evidence that the tax group helps or prepares for tax evasion.

The tax group Date of Registration shall be the first day of the month following the month of a registration application or any other date specified by the Authority in the Registration Certificate. The Authority shall notify the VAT representative in Oman of the group of the registration certificate.

What is the Result of VAT Group Registration in Oman?

  • The representative of the VAT group in Oman shall be responsible for all tax obligations imposed on the tax group, without prejudice to the joint liability of the rest of the members of the tax group.
  • Any activity that is carried out, any supply that is made, whether taxable or otherwise, and any import of goods or services performed by a member of the tax group, and any supply of goods or services provided to a member. The VAT group is considered to have been made by or for the benefit of a Tax Group Representative.
  • The output VAT is imposed by one of the members of the VAT group or the input VAT incurred by one of the members of the VAT group. It is considered as if it was imposed or incurred by the VAT group.
  • All members of the VAT group in Oman shall have joint responsibility among themselves for any VAT, additional VAT, administrative penalties, punishments, or other obligations imposed on the VAT group.
  • No imposition of VAT on goods and services transactions between members of the VAT group, and among them, where it would have been treated as a supply, otherwise.

How to Notify Changes VAT Group in Oman?

The representative of the VAT group is required to notify the Authority of any changes that occur to the details previously submitted to the VAT group registration application within thirty days from the occurrence of those changes on the application prepared for such purposes, provided that the notification includes documents related to the change. If required, a new registration certificate with the same Tax Identification Number will be issued, including the details, provided that the Tax Group Representative in Oman is required to hand over the previous Registration Certificate.

The VAT Group Representative is required to notify the Authority of any of the following changes within thirty days from the occurrence of these changes:

  • Absence of the Tax Group conditions.
  • Adding a new person to the Tax Group.
  • One member leaves the Tax Group.
  • Any change in any of the details by the Law and these Regulations.
  • Representative change of the Tax Group.
  • Cancellation of the Tax Group.
  • Any change in control that has an impact on any member of the Tax Group.

In cases determined by the Authority, issue a new Registration Certificate with the same Tax Identification Number. Provided that the Tax Group Representative in Oman is required to hand over the previously issued Registration Certificate to him.

What is the procedure for cancellation for the VAT Group in Oman?

VAT Group is cancelled based on a request or a notification submitted by the VAT Group Representative to the Authority. The Authority must notify the VAT Group Representative of the cancellation decision within thirty days from the date of receiving the request or the notification. The date of cancelling the VAT Group will be the first day of the month following the month of submission of the application or notification.

In the event a member of the VAT Group leaves it or is no longer eligible to participate in it, the expiry date of his membership in the VAT Group shall be any of the following two dates, whichever is earlier:

  • The date of the end of the tax period in which the notification of leaving the group was submitted.
  • The date on which the person no longer fulfils the conditions for participating in the VAT Group.

It becomes evident to the Authority that a member of the VAT group is no longer eligible to participate. The Authority may exclude the unqualified member from the VAT Group. Notify the representative of the group of that within thirty days from the date of exclusion.

The Authority has the right to cancel the VAT Group Registration when it becomes evident that the VAT Group helps or prepares for tax evasion. It shall notify the Group Representative about that within thirty days from the date of cancellation. The date of cancelling the VAT Group Registration shall be the first day of the month following the month in which the decision to cancel the VAT Group was made, or any other date determined by the Authority.

When a member leaves the VAT Group, or upon the cancellation of the VAT Group, the person applies for re-registration. The person is still required to register on that date by the provisions of the Law. The date of re-registration is the date of leaving the Tax Group or registration cancellation.