Oman VAT Registration Guide

• Published date: 25 January 2021
• Subject Matter: Tax, Sales Taxes: VAT, GST, Tax Authorities
• Law Firm: Nexdigm Private Limited
• Author: Nexdigm Private Limited

(Transitional Period)

The Oman tax authorities have recently released 'VAT Registration Guide (Transitional Period)', that explains the registration requirements for businesses and individuals. It covers different aspects such as liability to register for VAT and the registration requirements in the period before the VAT law is effective (i.e., the Transition period).

The guide has clarified that the below-mentioned steps should be followed in case any business/individual wants to register for VAT-

• Step 1: Determine whether a person must register for VAT.
• Step 2: Determine the components of annual supplies for the purpose of VAT registration.
• Step 3: Compute or estimate the value of supplies for relevant periods as explained in the guide.
• Step 4: Registration timelines to be determined based on annual supplies.
• Step 5: Submission of registration application as per procedures outlined.

We have summarized the stepwise guidance provided in the VAT registration guide below:

Step 1 -; Determine whether a person must register for VAT

Person required to register mandatorily

A mandatory registration would be required if any of the below condition is satisfied -

For a person who has a place of residence in Oman or who conducts a commercial, industrial, professional, or other activity in Oman	For a person who does not have a place of residence in Oman
If the actual value of taxable supplies made in the current month and previous 11 months combined, more than OMR 38,500 or If the expected value of taxable supplies to be made in the current month and next 11 months is expected to be more than OMR 38,500.	If he/she is obliged to pay tax, regardless of the value of supplies made.

Person required to register voluntarily

A voluntary registration can be applied if any of the below condition is satisfied -

For a person who has a place of residence in Oman or who conducts a commercial, industrial, professional, or other activity in Oman	For a person who does not have a place of residence in Oman
If the actual value of taxable supplies or expenses made in the current month and previous 11 months combined, more than OMR 19,250; or If the expected value of taxable supplies or expenses to be made in the current month and next 11 months is expected to be more than OMR 19,250.	Not applicable.

[Note: Expenses for the purpose of voluntary registration would mean expense relating to commercial, industrial professional or other activity conducted in...