1) Is my company exempted from VAT in Oman?
The following supplies will be exempted from standard VAT rate of 5% or zero rated in Sultanate of Oman:
● Health care services & medical equipment
● Educational services
● Renting or reselling of residential properties
● public transportation for passengers
● Real estate
● Crude oil derivatives
● Basic food products
● Financial services
● Exports of goods or services
2) What information needs to be included in VAT Invoices?
● Supplier company name & address
● VAT registration/identification number (VATIN)
● Customer details
● Tax invoice number
● Date of invoice issued, date supply is made, payment due date
● Purchase order (PO) number
● Description regarding rate & quantity of goods and services.
● Tax rate
● VAT charged in OMR
3) Do I need to register VAT in Oman?
● All companies above US$100,000 or RO 38,500 in Oman needs to do mandatory VAT registration in OMAN. It is also possible for companies with OMR 19,250 to do voluntary Tax registration in OMAN.
● Also, it is mandatory to do VAT registration if the business is run by a non-resident entity in Oman making taxable supplies in Sultanate of Oman. Also, for a non-resident person there is no minimum threshold.
● VAT is calculated on the value of supplies made by a business at the end of any month in addition to 11 months preceding it.
● 1% will be levied on the unpaid amount for delay in payment of VAT for every month.
Intentionally refraining from tax registration and payment is a punishable offence resulting in imprisonment for a period of 1 to 3 years and fine up to 20,000 OMR.
- All companies above US$100,000 or RO 38,500 in Oman needs to do mandatory VAT registration in OMAN. It is also possible for companies with OMR 19,250 to do voluntary Tax registration in OMAN.
- Also, it is mandatory to do VAT registration if the business is run by a non-resident entity in Oman making taxable supplies in Sultanate of Oman. Also, for a non-resident person there is no minimum threshold.
- VAT is calculated on the value of supplies made by a business at the end of any month in addition to 11 months preceding it.
- 1% will be levied on the unpaid amount for delay in payment of VAT for every month.
Intentionally refraining from tax registration and payment is a punishable offence resulting in imprisonment for a period of 1 to 3 years and fine up to 20,000 OMR.
4) When can I register VAT in Oman?
VAT registration in Oman is expected to start from February 2021.
You can register VAT in Oman through ADS INTERNATIONAL. We are here for you to provide ease of VAT registration in Oman. We are here to assist you regarding your queries about VAT registration and other services in Oman, how to register VAT in Oman & also about different tax structures and tax registration in Oman.
5) Is VAT applicable to special economic zone (SEZ) in Oman?
According to Article 54 Oman VAT Law recognizes Special Economic Zone (SEZ) but clarification and detailed information regarding this is expected to be provided by The Executive Regulations soon
Stay updated with ADS INTERNATIONAL for more information and queries regarding VAT in Oman.