Oman VAT 16 April 2021

Oman introduced Value Added Tax from 16 April 2021. Key features of the regime include:

VAT registration

Businesses are able to apply for a VAT registration threshold from 1 February 2021.

VAT registration threshold

The mandatory VAT registration threshold is OMR 38,500. However it is possible to apply for a voluntary registration above OMR 19,250. The threshold is based on annual sales for the rolling preceding 12 months.

Non-resident businesses making taxable supplies in Oman must VAT register.

VAT invoices

The following minimum information must be included in a VAT invoice. There is also an option for a simplified invoice

  • Supplier name, address and VAT identification number (VATIN)
  • “Tax Invoice” clearly indicated on the invoice
  • Date of invoice
  • Date of taxable supply of goods or services
  • A unique sequential invoice numbers
  • Customer details – name and address
  • Details of supply – quantity of goods etc
  • Gross value of supply in OMR
  • VAT calculation
  • Net value of supply

Zero rated supplies:

Certain supplies will be zero rated for VAT:

  • Exports of goods or services
  • Certain financial services
  • Education

Exempt supplies:

Certain supplies will be exempted including:

  • basic foodstuffs; 
  • rent; 
  • healthcare;
  • public education; 

Oman would be the fourth of six Arab Gulf states to introduce VAT as part of a 2016 VAT union agreement.

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