Oman Guide: What is the Place of Supply of Services for VAT in Oman?

VAT in Oman May 7, 2021

The place of supply is where a transaction is considered to have occurred for VAT Oman. It is determined differently for different services.

What is the Place of Supply of Transportation Services in Oman?

The place of the supply for VAT in Oman of the services of transporting goods or passengers, and related services. Determined in accordance to the following:

The place of supply in Oman of the services of transporting goods or passengers: in the place where the transportation started, even if the journey includes more than one stopping point.
The place of supply of the transport-related Services: in the place of the related transport Services.

Transport related Services for VAT in Oman mean any service necessary to complete the transportation of goods or passengers, and it includes, in particular, the following Services:

Port fees or charges, including docking, mooring, landing, and parking fees.
Customs tax, custom clearance charges related to the transportation.
Air Navigation Services.
Pilotage Services.
Supply of crewmembers.
Loading, unloading, and reloading.
Cargo stowing.
Opening for inspection.
Cargo security Services.
Preparing or amending documents and certificates of loading, air or sea-waybills, and certificates of shipmen.
Filling or Packing necessary for transportation.
Storage Services.

What is the Place of Supply of Real Estate Services in Oman?

Real estate-related services affecting the area of the real estate or are related to a specific area of real estate.

Real estate-related services for VAT in Oman include, in particular, the following:

Engineering, studies, management, and construction supervision works.
Residential services.
Granting any right over the real estate, assigning it, or leaving it.
Right to claim any power over the real estate, earmarking or abandoning the right to claim.
Conferring the right to obtain any benefit over the real estate, assigning or quitting the right to get it.
Granting a license to occupy a real estate or earmarking or leaving it.
Conferring any contractual right that is exercisable over the real estate or related to it or earmarking or leaving the contractual right.
Building and demolition services and services of executing construction works.
The work of trading buildings, management, maintenance, and repair works of buildings, real estate agents and brokers works, real estate experts, and others who carry out tasks and work related to real estate.

Real estate in Oman means any specific area of land, building, building frame, engineering work attached permanently to land, in addition to any goods attached to any building, building structure, or engineering work.

What is the Place of Supply of Telecommunication Services in Oman?

The place of supply of Wired and Wireless Telecommunication services for VAT in Oman shall be in the area of the actual usage of these services or enjoying them. It shall be determined as follows:

In the place of residence of the consumer, in cases where the consumer is Taxable. Unless providing the services through fixed communication tools located in a specified geographical location to receive the services such as fixed or public telephone services or internet services, which require the actual presence of the consumer in the place of usage of devices. The region of actual use or enjoyment of these services. It is deemed to be in the geographical location of the devices.
In the place of actual usage and enjoyment of those Services, in cases where the consumer was not taxable, and determination of region in accordance to the following:

Where the supply of services through fixed communication tools existing in the specified geographical location to receive the service such as static or public telephones or internet services that require the actual presence of the customer in the place of the usage of these tools. The region of actual use and enjoyment of the service by the customer. It is deemed to be in the geographical location of the devices.
Where providing the services through mobile networks. The place for using and enjoying the service is in the country. The usage of mobile networks to receive these services, including international roaming.

The supplier supplies Telecommunication Services to a Customer to re-supply them to another Customer. The determination of location for actual usage and enjoyment of the services. For each of the two transactions separately.

In all cases, the determination of place of actual usage of the Telecommunication Services based on the Tax due date mentioned in the Law. Any subsequent changes on the use of the Services received shall not affect the determination of the place of the supply.

Wired and Wireless Telecommunication Services for VAT in Oman mean the services by which the transfer, broadcasting, transmission, or reception of signals, symbols, signs, scripts, visible and invisible pictures, sounds, data or information of any nature by wired systems, radio, light, or any other electromagnetic or electronic systems, and include in particular the following Services:

Landlines and mobile telephone services for the transmission and switching of voice, data, and video, including telephone services with an imaging component.
Providing Telephone Services through the net, including voice over Internet Protocol (VoIP).
Voice mail, call waiting, call forwarding, caller identification, three-way calling, and other call management Services.
Paging Services.
Audio text Services.
Facsimile, telegraph, and telex.
Accessing the net, including the World Wide Web.
Private network connection providing telecommunications links for the exclusive use of the client.
Radio and television broadcasting Services.
The transfer or assignment of the right to use the capacity for broadcasting, transmission, or reception purposes.

What is the Place of Supply of Electronically Supplied Services in Oman?

The place of supply of Electronically Supplied Services for VAT in Oman is located in the place of actual usage of these services or enjoying them. The determination of place of actual use of these services or enjoying them shall by the following:

The place of residence of the consumer if a consumer is a Taxable Person. The determination according to the following:

The Customer’s address as stipulated in the Tax invoice or the documents used to send the invoices.
The Customer’s bank account details.
The internet address of the consumer is used to receive wired and wireless Telecommunications Services and Electronically Supplied Services.
The international symbol of the electronic chip used by the consumer to receive Telecommunications Services and the Electronically Supplied Services.
Other information of a commercial nature.

The place of actual usage and enjoyment of the Electronically Supplied Services, in case the consumer is not a Taxable Person, in this case, the location is determined according to the following:

If receiving the Electronically Supplied Services requires the actual presence of the consumer in a specific fixed location, then this location is deemed to be the place of use and enjoyment of these Services.
The international symbol for the electronic chip used by the consumer to receive Telecommunications Services and the Electronically Supplied Services.
The Internet Protocol (IP) address of the device the used consumer or any other method identified by the consumer’s geographical location.
The Customer’s address as stipulated in the Tax invoice or the documents used to send the invoices.
Customer’s bank account details. F. Other information of a commercial nature.

In all cases, the place of actual usage and enjoyment of the Electronically Supplied Services is determined based on the Tax due date mentioned in the Law. Any subsequent changes in the use of the service received shall not affect the determination of the place of the supply.

Electronically Supplied Services for VAT in Oman mean the services supplied directly through the internet or an electronic network. The supply of the services is principally automatic and requires minimum human interference, and only with the use of information technology, and include in particular the following services:

Supply of digitized products generally, including software and changing or upgrading software.
The business or personal presence on an electronic network. Such as a website or a webpage.
Services are automatically generated from a computer via the net or an electronic network in response to specific data input by the recipient.
Transfer of the right to put Goods or Services up for sale on an Internet site operating as an online market potential buyer make their bids by an automated procedure for consideration. The parties are notified of a transaction by electronic mail automatically generated from a computer.
Internet Service Packages (ISP) of information in which the telecommunication component forms an ancillary and subordinate part.
Service of Website hosting and webpage hosting.
Service of Digital content of books and other electronic publications.
Access and subscriptions to online newspapers and journals, online news, traffic information, and weather reports.
Download the music, jingles, excerpts, ringtones, or other sounds.
Accessing or downloading films, videos, games, including online games dependent on the net, or other similar electronic networks, where players are geographically remote from one another.
Distance education Services.
Space for advertising on a website with the related rights.
Live broadcast via the net.