VAT Registration Deadline in Oman

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Yarab A, Mar-02-2021

Come 16th  April,2021, VAT in Oman becomes a reality. To ensure a smooth rollout of VAT, the tax authorities (TA) in Oman have issued a VAT registration deadline. The registration deadlines are planned in a phased manner, allowing businesses to register on different registration dates.

The registration window is opened from 1st February,2021. As per the registration guideline, different registration deadlines are issued for different businesses based on the annual supplies threshold.

VAT Registration Deadline in Oman

In the first phase, larger businesses basis the annual supplies threshold is required to register. In the next and subsequent phases, the rest of the businesses based on the prescribed threshold are expected to register under VAT. Though the Oman Vat mandates all the businesses with annual supplies more than 38,500 OMR to register, the tax authorities have issued a registration deadline that doesn’t require all the businesses to apply for registration from 1st February,2021.

The registration deadline along with the type of business is listed down

Businesses exceeding Annual supplies 1,000,000 OMR

In the first phase of Oman vat registration, the larger businesses whose annual supplies have exceeded or expected to exceed 1,000,000 OMR should apply for Vat registration.

Businesses

Registration Period

Last Date to Register

Effective Date of Registration

Businesses with annual supplies that exceed or expected to exceed 1,000,000 OMR

From 1st February, 2021 to 15th March, 2021

15th March,2021

Effective date of the Law (1st April,2021)

Here, though the registration is expected to happen before 15th March,2021, the effective date of registration will be 1st April,2021 meaning, you need to comply with VAT law from that date onwards.

Businesses with Annual supplies from 500,000 OMR to 1,000,000 OMR

In the second phase, businesses whose annual supplies have exceeded or expected to be from 500,000 OMR to 1,000,000 OMR should apply for Vat registration within 31st May,2021.

Businesses

Registration Period

Last Date to Register

Effective Date of Registration

Businesses with annual supplies that exceed or expected to be from 500,000 OMR to 1,000,000 OMR

From 1st April, 2021 to 31st May, 2021

31st May,2021

1st July,2021

All those businesses who are falling into the above category, the VAT Law will be applicable from 1st July,2021.

Businesses with Annual supplies from 250,000 OMR to 499,999 OMR

In this phases, businesses whose supplies exceed or expected to be from 250,000 OMR to 499,999 OMR should apply for VAT registration starting from 1st July,2021.

Businesses

Registration Period

Last Date to Register

Effective Date of Registration

Businesses with annual supplies that exceed or expected to be from 250,000 OMR to 499,999 OMR

From 1st July, 2021 to 31st August, 2021

31st August,2021

1st October,2021

Here, the businesses need to comply with the VAT law from 1st October,2021

Businesses with Annual supplies from 38,500 OMR to 249,999 OMR

This is the last phase of VAT registration which is applicable for businesses whose annual supplies exceed or expected to be above the mandatory threshold limit of 38,500.  For such business, the registration window opens from 1st December,2021 and 28th February,2022, being the last date.

Businesses

Registration Period

Last Date to Register

Effective Date of Registration

Businesses with annual supplies that exceed or expected to be from 38,500 OMR to 249,999

From 1st December, 2021 to 28th February,

2022

28th February,2022

1st April ,2022

Voluntary registration for business with annual supplies exceeding 19,250 OMR

Business can voluntarily register if the annual supplies or the taxable expenses incurred is not less than the voluntary registration threshold of 19,250 OMR.

Businesses

Registration Period

Voluntary Registration

From 1st February,

The voluntary registration window is opened from 1st February and businesses are free to register anytime as they decide to do so.

The above are the different VAT registration deadline issued by the tax authorities in Oman. With deadlines available, businesses need to determine the registration applicability and the date on which they need to apply for VAT registration.

For this to happen, you need to calculate the value of supplies for the previous period or estimation for the forthcoming period inline with the outline given by the law. For the purpose of VAT registration, the value of supplies includes taxable supplies, intra-GCC supplies and supplies subject to reverse charge mechanism. 

Know more about Oman VAT

 

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