The Sultanate of Oman implemented VAT on 16th April 2021 following Royal Decree no. 121/2020. Here are the key points:
- VAT Rate: The standard VAT rate in Oman is 5%. This rate aligns with the Gulf Cooperation Council (GCC) Unified Agreement and global standards1.
- Registration:
- Mandatory Registration: Businesses with total supplies exceeding or expected to exceed OMR 38,500 must register for VAT.
- Voluntary Registration: Businesses with total supplies or expenditures exceeding or expected to exceed OMR 19,250 can voluntarily register.
- The registration process is online.
- Types of Supplies:
- Standard-rated supplies: These attract a 5% VAT rate.
- Zero-rated supplies: These include exports, international transportation services, and basic food items (0% VAT).
- Exempt supplies: Certain services (e.g., financial services, education, local passenger transportation) are exempt from VAT.
- Out-of-scope supplies: Some supplies fall outside the VAT ambit.
- Input Tax Deduction:
- Businesses can claim input tax paid on purchases using original tax invoices.
- Records must be maintained for ten years (or 15 years for real estate businesses).
Source:
(1) cleartax.com
(2) Images by FreePik
