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What is the VAT Registration Procedure for Non-residents in Oman?

VAT in Oman
What is the VAT Registration Procedure for Non-residents in Oman

Oman government has chosen a phased strategy for Implementing VAT in Oman. The Tax Authority published a Transitional Registration guide that suggests four-phase VAT Registration plans for persons with various levels of annual supplies. Executive Decisions and Transitional Registration answer questions regarding the process of VAT Registration in Oman.

How should Non-residents appoint a Responsible Person in Oman?

People with no place of residence in Oman need to designate a Responsible Person having a place of residence in Oman. The Taxable Person shall inform the Authority of the appointment of the Responsible Person on the form prescribed for such purposes. It shall include the following details and documents concerning the Responsible Person

  • Name,
  • Occupation,
  • Address,
  • Telephone number,
  • Email address,
  • A copy of the passport, the personal ID card or the residency card,
  • Any other details specified by the Authority.

The Taxable Person must notify the Authority of any change in the details and documents within ten days. The occurrence of the changes on the form prescribed for such purposes.

How should Non-residents register for VAT in Oman?

People who have no place of residence in the Sultanate shall register with the Authority. It is applicable from the date to pay the VAT by the provisions of this Law. The person who has no place of residence in Oman and is required to register as per VAT law shall register as follows:

  • The person who has no place of residence in Oman and has a place of residence in any of the GCC implementing States – Shall submit a Registration Application by these Laws within thirty days from the date of adhering to the conditions specified in the Law. The effective date of registration is determined by the Regulations.
  • The person who has no have a place of residence in the Sultanate or any of the GCC implementing States –Shall submit a Registration Application by Article of these Regulations, twenty days before the beginning of the month in which the first supply takes place. The effective date of registration shall be the date of the first supply on which the Person is liable to pay Tax.

How should Non-residents appoint a Tax Agent in Oman?

Non-residents may appoint a tax agent after obtaining the approval of the Authority. The tax agent will replace the Non-resident in all related to his tax liabilities and rights, and the Regulations determine the conditions and procedures to appoint the tax representative.

The person who has no place of residence in the Sultanate may appoint a Tax Representative provided the following conditions are met:

  • The Tax Representative is appointed under a written and valid agreement.
  • The Tax Representative has a place of residence in the Sultanate.
  • The Tax Representative is registered for Tax in Oman.
  • Any other conditions determined by the Authority.

The application for appointing a Tax Representative shall be submitted to the Authority on the form prepared for such purpose, provided the application includes the following details and documents:

  • The name, address, and Tax Identification Number of the Tax Representative.
  • The nature of the activity conducted by the Tax Representative.
  • A copy of the written agreement between the Non-resident and the Tax representative.
  • A copy of the commercial register for the Tax Representative.
  • Any other details or documents determined by the Authority.

The Authority shall decide on the application to appoint the Tax Representative within a period not exceeding thirty days from the date on which the applicant submits all details and documents per of these Regulations. No reply within this period shall be considered a rejection of the application.

If the Authority approves the Tax Representative Registration application, the Tax Representative is granted a Tax Identification Number for the non-resident. If the Tax Representative ceases to represent the tax group for any reason, he must notify the Authority fifteen days before the expiry date.

What is the alternative option for appointing a Responsible Person or Tax Representative in Oman?

People with no place of residence in Oman can register for VAT directly and designate a responsible person related to them. The applicant must also provide a copy of a bank guarantee or fiscal undertaking in favour of the Tax Authority.

The bank guarantee or fiscal undertaking must be allotted from a bank in Oman in the name of the Tax Authority for a value not less than 5% of taxable annual supplies and valid for one year. In addition, the Non-resident must provide details of a bank account in Oman and pay the VAT due in Omani Rials.

The Procedures for VAT registration in this case is:

  • Download and complete registration application form for non-resident persons available on Tax Portal.
  • Declare the Responsible Person in the application and additional proof of appointment and how the person is related to the applicant.
  • Furnish Omani bank account details that include the full name and address of the bank, identifying SWIFT or other codes.
  • State value of taxable annual supplies in the registration application and amount of bank guarantee not less than 5% of taxable annual supplies
  • Append the bank guarantee issued by a bank in Oman issued in the name of the Tax Authority
  • Apply via email appending required documentation
  • After final approval, the Tax Authority will send the successful registrant a username and password to access the account.