Oman Guide: What is the Taxable Value for VAT in Oman?

The Taxable Value for VAT in Oman is the value that is chargeable to VAT. It shall include all expenses charged by the taxable provider to the customer, any fees or taxes due of the goods and services except for deductions, subsidies, grants, or amounts determined by the Regulations. The Taxable Value of Deemed Supply is the value of purchase or cost. In the cases of non-determination of the worth. The determination of Taxable Value by the market value as per the Regulations.

What are the rules for Determining the Taxable Value in Oman?

The Taxable Value for VAT in Oman imposed by a Taxable Supplier on the Customer for Supplies of Goods and Services shall not include the following:

• Any discount or remission granted by The Taxable Supplier to the customer provided meeting the following conditions. The writing of the value of the granted discount or reduction in the Tax invoice, and the provider has a clear policy for discounts and reductions.
• Any grants or subsidies granted by the Government Authorities to the provider.
• Financial security amounts that are refundable and do not represent a payment on account. It is at a later date will not be used to reduce the value due in respect of the goods and services.
• Damage and Loss compensation.
• Insurance compensation
• The amounts are paid on behalf of the consumer by the provider. The legal responsibility to pay is with the consumer.

What is the determination of the taxable value in specific cases in Oman?

The taxable value for VAT in Oman is determined in the following as follows:

• When the final Consideration excluding VAT is not specified between the Taxable Supplier and the customer due to linking of the agreement to an unknown variable or criteria, the Taxable Value is the expected value of the goods and services. Until the recalculation of Taxable Value when the value of the goods and services becomes definitively determined.
• Single-purpose Vouchers and pre-paid telecommunication cards - The Taxable Value is the value of the Consideration due for the supply of these vouchers and cards.
• Multi-Purpose Vouchers and pre-paid telecommunication cards that are Multi-Purpose - The Taxable Value is the value of the Consideration imposed by the last Supplier for its supply.

If it is not possible to know this value. The deeming of the value of Consideration to be the nominal value recorded on the voucher or pre-paid telecommunication or the related commercial documents.

• Without prejudice to the provisions of these Regulations, where the various components of the supply are subject to different tax treatments, the value shall be proportioned to apply the VAT due on each Good or Service according to its Tax treatment for VAT in Oman. Otherwise, the imposition of tax on the price at a rate of the highest Tax rate.
• For Goods deposited or mortgaged as security, supplied by the depository or the creditor of the mortgage holder. The usage of the value of supply of these Goods and Services as a basis for imposing The Tax.

What is the taxable value for Reverse Charge Mechanism in Oman?

The Taxable Value for VAT in Oman of the Reverse Charge Mechanism per the Law shall be the value as per the invoice. Where no invoice is issued, the value will be the Fair Market Value of the Supply.

In the case where the Goods and Services are to a party who is not entitled to reclaim the Input Tax in full by the provisions of these Regulations, the Taxable Value subject to the Reverse Charge Mechanism shall be the higher of the following amounts:

• The invoice value.
• The actual payment made for the Goods and Services.
• The Fair Market Value of the Supply.

What is the taxable value for imported Goods in Oman?

The Taxable Value for VAT in Oman of imported Goods comprises of the Customs value determined per the Common Customs Law. Addition to other taxes, fees, and expenses related to the importation even if these Goods are exempt from the customs duty.

Other taxes, fees, and expenses include, in particular, the following:

• Excise tax and customs duties.
• All fees levied by the Customs or any other party on the importation.
• Transportation, packaging, storage, stacking, and insurance fees.

The Import Tax base does not include any discounts on the value given in the date of Import.
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