VAT in Oman is one of the most awaited financial updates in the GCC region. According to the Common GCC VAT agreement, Oman will be the fourth country to implement VAT aligned with the GCC VAT Framework with effect from April 2021 at a standard rate of 5%, with limited zero-ratings offering highest number of exemptions in the region.
On Monday 12 October 2020, His Majesty, the Sultan of Oman, Sultan Haitham bin Tariq bin Taimur, issued Royal Decree No.121/2020 in relation to the implementation of VAT in Oman. The official gazette on VAT is law is expected to be released in November 2020.
Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of supply. It is a form of indirect tax which is adopted by more 180 countries in the globe.
It is expected that VAT in Oman will be in effect from 16th of April 2021. The rate of tax in Oman will be 5% in line with the GCC VAT agreement and there are categories of goods and services classified as Zero-rated and Exempted as well.
Subject to the conditions mentioned in the Executive Regulations, the following supplies are zero-rated as per the Oman VAT Law:
The introduction of VAT in Oman marks a significant economic reform in the region and is expected to make a boost the country’s revenue by 400 Million OMR per annum.
As a business owner/Manager in the Sultanate of Oman, it is imperative for you to understand the law and develop a tax system that is in compliance with VAT Law in Oman. A foolproof tax system shall be designed to understand the nature of business you are in and identify the tax points to determine the taxability of transactions.
Done fast, done right
VAT Consultancy Service in Oman - Emirates CA offers a complete range of VAT Consultancy Services that can help in the proper implementation of Oman VAT Regulations in your Business.
With our abundant experience in implementing VAT across a wide array of clientele in UAE, Bahrain, and KSA, we can support you in developing a sustainable tax system in compliance with the regulations. Our services include:
The law stipulates the VAT registration into two categories 1. Mandatory Registration and 2. Voluntary Registration
A taxable person who has a turnover of OMR 38,500 in the current month plus 11 months preceding the current months or is expected to reach such turnover in the current month plus 11 months succeeding the current months shall mandatorily register for VAT in Oman.
Further, any non-resident performing taxable supplies in the Sultanate is bound to register for VAT in Oman irrespective of their turnover.
A taxable person who has a turnover of OMR 19,250 in the current month plus 11 months preceding the current months or is expected to reach such turnover in the current month plus 11 months succeeding the current months can voluntarily register for VAT in Oman.
VAT Implementation service is a holistic approach to developing a tax system for your company. Our tax experts will understand every aspect of your business in detail to determine the tax points involved in every transaction.
As a business operating in a tax regime, it shall be your priority to be in compliance with the law of the land. And it is often challenging to understand a new law and its implications in your business. That is where our service becomes critical for you.
With our experience in implementing VAT in three GCC counties, we understand the challenges you may face and have successfully devised solutions to overcome them
News & Press Release
Jan 07, 2021
VAT Registration and Implementation Due Dates in Oman VAT Registration in Oman with Oman Tax Authority between 1st February 2021 and 15th March 2021. Once these licensees obtain their VAT Registratio...
Dec 27, 2020
VAT Registration in Oman VAT Registration in OMAN is expected to begin from January 2021. VAT Registration in Oman is mandatory for companies with an annual turnover above 38,500 OM...