Registration for VAT in Oman

The Sultanate of Oman announced the implementation of VAT in the state through Royal Decree no. 121/2020. The Royal Decree forms the basis of the new VAT regulations in the Sultanate. The tax authorities have ample time to formulate the required procedures and regulations on Oman VAT Law.

The correct procedure and requirements for registering the VAT will come into the light once the registration starts. Businesses and individuals in Oman falling under the VAT minimum threshold must start preparing for the VAT filing.

Anticipated Registration Process of Oman VAT Law

According to the Tax Authority in Oman, the VAT registration process will be electronic. The Tax authority’s E-service section includes other taxes like income tax, excise tax, and withholding tax already.

The registration process is likely to start in January 2021 according to the Tax Authority in Oman. All registration process will be through its online e-services portal.

The Applicant will have to provide the company ownership and business-related information. The necessary information required to register with the portal may include:

Copy of trade license
ID card and Passport copies of business owner and partners
Company’s Memorandum of Association
Contact details, E-mail for registration and other contact details
Bank account details
The income statement for the last 12 months
Nature of business and activities performed
Each registering entity will be allotted a VAT registration identification number other than their currently held tax number.

The VAT registration for all entities will take place on a self-assessment basis initially. That means the business will have to assess their annual turnover either for the past 12 months or the future 12 months.

Oman VAT Effective Date, Rate, and Period
According to the current information available, all entities have a transition period of six months. The effective date for VAT implementation is the 16th of April, 2021. Any business transaction taking place on or after the date will include the VAT implications.

The VAT in Oman will be implemented at a rate of 5%.

The VAT assessment will be made on the annual turnover basis. Any business with a threshold income of OMR. 19,250 can register on a voluntary basis. All businesses with an annual turnover of OMR. 38,500 will have to register on a mandatory basis.