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 Registration from Oman Tax Authority, their effective date of VAT Implementation in Oman will be on 16th of April 2021.
VAT Implementation in Oman will happen in four phases beginning from 1st February 2021 to 28th February 2022. The VAT Registration in Oman will be based on the turnover of the licensees in the Sultanate. For instance, a licensee having turnover of 1,000,000/- Omani Riyal.
This signifies that every taxable supply made on or after the 16th of April 2021 will be subject to VAT for these categories of registrants. They shall adhere to all the regulations of the VAT Law from such date of VAT Implementation in Oman.
Similarly, the due dates for other licensees have been clarified by Oman Tax Authority in their press release. These due dates of VAT Registration and Implementation in Oman is based on the turnover of the licensees.
Oman Tax Authority, in its latest press release, has specified the timelines for VAT Registration in Oman and their respective VAT implementation dates. Similarly, what we have seen in Bahrain, Oman Tax Authority has also scheduled to implement VAT in Oman in a phased manner.
To simplify, please find below a table of timelines on VAT Registration and Implementation
Licensee having Annual Taxable Turnover FROM
Licensee having Annual Taxable Turnover UPTO
Effective Date of Implementation
(No Maximum Limit)
01st February 2021 to 15th March 2021
16th April 2021
01st April 2021 to 31st May 2021
01st July 2021
01st July 2021 to 31st May 2021
01st October 2021
01st December 2021 to 28th February 2021
01st April 2022
As evident from the above table, the final phase of VAT Implementation in Oman will occur by 1st of April 2022.
Who Should Register for VAT in Oman?
Every licensee in the Sultanate of Oman is expected to ascertain their liability of VAT Registration based on their taxable turnover. Any licensee who is otherwise required to be registered for tax purposes under Oman VAT Law, fails to do so will be liable for a severe penalty of OMR 20,000.
As a business owner in Sultanate of Oman, it is highly recommended that you identify the ‘taxable’ turnover of your business and determine the date on which you will require to apply for VAT Registration in Oman.
As the world moves to a new year filled with hopes of revival and reinforcement, this update from the Oman Tax Authority is a welcoming move towards Tax Implementation in the GCC region.
How Emirates Chartered Accountants Can Help you with VAT Registration and VAT Implementation in Oman?
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.