Oman Guide: What is VAT Refund in Oman?

Refund is of the VAT paid more than the VAT payable to the Oman Tax Authority shall be submitted by the Taxable Person to the Authority on the application prepared for such purpose. The refund request includes the value of the VAT demanded for refund, the reasons, and the tax period. The aiding details and documents shall be attached to the application.

In all cases, to refund any Tax, the amounts claimed for refund must be decisive and undisputed. The submission of the refund request needs to be within five years from the end of the tax period in which this right arose. The delay leads to forfeiture of the refund request.

What is the purpose of the Authority for VAT Refund in Oman?

The Authority shall decide on the refund application submitted within thirty days from finishing all the details and documents demanded. Otherwise, it leads to the rejection of the application. The Authority shall refund the approved amount -fully or partially- to the Taxable Person in Oman within fifteen days from the date of announcement of the decision.

What is the Alternative VAT Refund method in Oman?

The Taxable Person may apply to the Authority to refund the excess deductible VAT for any tax period on the application prepared for such purposes during the prescribed deadline for submitting the VAT return for that period. Provided the deducted VAT in Oman in that period exceeds one hundred (100) Omani Rials.

Otherwise, a refund application may be submitted for the tax year, regardless of the value of the deductible excess VAT and during the deadline designated for submitting the tax return in Oman for the first tax period following that tax year. The submission of the refund request needs to be within five years from the end of the tax period in which this right arose. The delay leads to forfeiture of the refund request.

The Authority shall decide on the refund request submitted within thirty days from the date of its submission. Otherwise, it leads to the rejection of the application. The Authority must return the approved amount - fully or partially - to the Taxable Person in Oman within fifteen days from the date of being notified of the decision.

What are the VAT Refund conditions for Non-residents in Oman?

VAT paid in Oman by any person who does not have a place of residence in Oman or any of the implementing GCC States shall be refunded provided meeting the following conditions:

• The non-registration by the applicant for VAT (or required to register) in Oman or any implementing GCC States.
• The applicant who has no place of residence in Oman or any of the GCC States does not supply goods or services for which liable to pay Tax in Oman or any of the GCC States.
• The applicant is VAT registered in its country of residence if it applies a Value Added Tax or a similar tax system.
• The VAT incurred in Oman by the applicant is for economic activity, and the Tax is deductible in Oman.
• The meeting of the condition of reciprocity in the tax rules in the applicant’s country of residence.
• The total value of the VAT claimed on any Tax Refund Request should not be less than one hundred Omani Rials.
• The non-incurring of VAT on any of the following goods and services Petroleum products, Tobacco, or e-Cigarette products, Alcoholic drinks, Telecommunications services, Motor vehicles, and Goods (fully or partially) consumed and used in Oman.

What is the VAT Refund procedure for Non-residents in Oman?

The submission of the VAT refunds application by someone who does not have a place of residence in Oman or any of the GCC implementing States. The applications prepared for such purposes to the Authority provided that the request includes the following details and documents:

• A Copy of purchase invoices, including their number and date, and other supporting documents to the invoices.
• To each invoice; names, addresses, and Tax identification numbers of suppliers in Oman.
• Value of the Tax on each invoice and in total.
• Applicant’s bank account details.
• VAT registration certificate in Oman or other statement issued by the tax administration of the country of residence of the applicant, showing business address and tax registration number, provided using the certificate within three months of the date of the Tax Refund application in Oman.
• Any other details required by the Authority.

Tax Refund application in Oman submitted within six months from the end of the following periods for invoices with dates that fall within these periods:

• The first period: from 1st January to 30th June in each tax year.
• The second period: from 1st July to 31st December in each tax year.

What is the VAT Refund decision process for Non-residents in Oman?

The Authority shall decide on the Tax Refund application and notify the applicant within sixty days of the date of receipt of the completed Tax Refund application. The decision may be either to reject or to approve the Tax Refund application. The Authority shall refund approved amounts on the Tax Refund request to the applicant’s bank account within thirty days of notifying the applicant with transfer costs borne by the applicant.

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