07 January, 2021
With almost 90 days remaining before VAT is formally implemented in Oman, the Oman Tax Authority (OTA) has released a guide on VAT registration and how to prepare for Oman VAT.
The guide confirms that the go live date for VAT in Oman is 16 April 2021 and the VAT registration will take effect in a phased manner i.e. based on the revenue of the taxable person.
Guide for VAT registration (The transitional phase)
The table below provides details of the registration categories, registration timelines and effective date of registration.
Category | Registration timelines | Effective date of Registration |
For a person whose annual value of supplies exceeds or is expected to exceed one million (1,000,000) OMR | 1 Feb 2021 - 15 Mar 2021 | 16 April 2021 |
For a person whose annual value of supplies is between 500,000 to 1,000,000 Omani Rials | 1 April 2021 - 31 May 2021 | 1 July 2021 |
For a person whose annual supplies are between 250,000 and 499,999 OMR | 1 July 2021 - 31 Aug 2021 | 1 October 2021 |
For a person whose annual value of supplies is between 38,500 and 249,999 OMR | 1 Dec 2021 - 28 Feb 2022 | 1 April 2022 |
The key highlights of the Oman VAT registration guide:
- The guide mentions the steps that must be followed in order to register for VAT.
The first step | Determine whether the person is obligated to register or not. |
The second step | Determine the components of the annual supplies for the purposes of registration. |
The third step | Calculate or estimate the total value of supplies for the periods that will be clarified later in this guide. |
The fourth step | Confirming the registration date based on the result of calculating or estimating the total value of supplies. |
The fifth step | Apply for registration according to the procedures that will be clarified by the tax authority. |
- Who is required to register for VAT?
- For registration purposes the value of supplies includes the following:
- Calculating the total value of supplies for the purpose of registration
Calculating the total value of supplies before the VAT Law comes into effect
Calculating the total value of supplies after the VAT Law comes into effect
The registration date (in a phased manner)
After calculating the annual supplies, the person required to register must submit an application for registration with the tax authority within the dates specified by Decision of the Head of the Tax Authority.
Category | Registration timelines | Effective date of Registration |
For a person whose annual value of supplies exceeds or is expected to exceed one million (1,000,000) OMR | 1 Feb 2021 - 15 Mar 2021 | 16 April 2021 |
For a person whose annual value of supplies is between 500,000 to 1,000,00 Omani Rials | 1 April 2021 - 31 May 2021 | 1 July 2021 |
For a person whose annual supplies are between 250,000 and 499,999 OMR | 1 July 2021 - 31 August 2021 | 1 October 2021 |
For a person whose annual value of supplies is between 38,500 and 249,999 OMR | 1 December 2021 - 28 Feb 2022 | 1 April 2022 |
The date of registration is the date on which the registration becomes effective, and the registered person must comply with all provisions of the law as of this date, such as issuing tax invoices, keeping accounting records, submitting tax declarations and other tax obligations.
Voluntary registration
A person who may voluntarily register may apply for his registration to the tax authority at any time starting February 1, 2021.
How to apply for VAT registration?
The link to the VAT registration guidance on the Oman Tax Authority website (Arabic version) can be accessed below;
Oman is adopting a phased implementation approach for VAT registration and implementation. The online VAT registration for the mandatory first tranche commences from 1 February 2021. However, a person who may voluntarily register for VAT, may apply to do so from 1 February 2021.
Non timely registration for VAT may attract penalties mentioned in the Oman VAT Law.
For any VAT related queries that you may have, do feel free to contact our team of experts.