Who Should Register Under Oman VAT?

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Yarab A | Updated on: July 27, 2021

16th April,2021 is the day on which Oman VAT is expected to be implemented. With VAT being an indirect tax, businesses will be entrusted with the responsibility to levy, collect, and remit the tax to the government.  To levy VAT, the businesses need to register with Oman VAT authorities and only then, they are authorized to charge VAT on the taxable supplies. Now, the important question is “Who should register under VAT? Should all businesses that are making supplies be registered?

The answer is ‘No’.

 Oman VAT Law and tax authorities have issued guidelines that prescribe the businesses responsible to register under Oman VAT. Let’s understand what type of business should register.

Type of business who should register under Oman VAT

The Oman VAT law mandates every person who conducts economic activity and has a place of residence in the sultanate, should apply for VAT registration. In other words, any person who meets the following conditions should register under Oman VAT.

  • Has a place of residence in Oman
  • Conducts a commercial, industrial, professional, or other activity in the Sultanate
  • The annual supplies exceed or is expected to exceed the registration threshold as prescribed by the law
  • In the case of a non-resident, businesses should register regardless of the value of supplies made, if they are obligated to pay tax on the supplies they make.

Now, that we know the persons who are required to register, not all of them need to necessarily register. Only those businesses crossing the defined annual supplies turnover threshold are liable to register under VAT.

Based on the registration threshold, a business will either be:

  • Mandated to register or
  • As an option, a business can apply for voluntary registration or
  • Seek exemption from VAT registration.
 Read VAT Rate Structure in Oman

Who should Mandatorily register under Oman VAT?

All the businesses who have a place of residence in Oman and whose value of supplies in the previous 11 months and the current month have exceeded 38,500 OMR should mandatorily register under Oman VAT.

Also, if the businesses anticipate that the total value of supplies in the current month and the next 11 months will exceed the mandatory registration threshold of OMR 38,500, then they too have to register under Oman VAT.

Those businesses, who do not have a place of residence in Oman, will have to compulsorily register under VAT irrespective of the registration threshold.

Mandatory Registration in Oman VAT

Type of Business

Registration Threshold Conditions

Resident

Value of Supplies exceeds

OMR 38,500

12 Months Period (Current Month + Previous 11 Months)

Anticipated to exceed in the current month and the next 11 months

Non Resident

Threshold limit is not applicable

Compulsorily registration under VAT irrespective of the threshold

Who can Voluntarily register under Oman Vat?

Businesses who are not required to mandatorily register under VAT, are given an option to voluntarily apply for VAT registration. Business can voluntarily register if the annual supplies or the taxable expenses incurred is not less than voluntary registration thresh­old. The voluntary registration threshold is 19,250 OMR which is exactly 50% of the mandatory registration threshold.

Voluntary VAT Registration in Oman

Value of Supplies or taxable business expenses exceed 19,250

12 Months Period (Current Month + Previous 11 Months)

Anticipated to exceed in the current month and the next 11 months

Who are exempted from VAT registration in Oman?

The businesses whose annual value of supplies is below the voluntary registration threshold of 19,250 OMR are not allowed to register under Oman VAT. In other words, businesses with annual supplies below 19,250 OMR are exempt from VAT registration in Oman.

Also, those businesses who are engaged in making only zero-rated supplies may request for a VAT registration exemption.

Now that you know who should register, read VAT Rate in Oman to know more about the tax structure and exemptions.

FAQ on Oman VAT registration

  • How do I register for VAT in Oman?

To register under Oman VAT, you need to log in to https://tms.taxoman.gov.om/portal/web/taxportal/ and fill the VAT registration form.

  • Is it worth getting VAT registered?

Yes, if you are a business with huge expenses/ purchases, registering under Oman VAT help you claim back Vat. Read Business Benefits of Voluntary VAT Registration to know more.

  • Is it easy to register for VAT?
  • Yes, the VAT registration is completely online. You need to furnish your business details and supporting documents to register under VAT.

  • Can I register for VAT myself?

Yes, you can register under VAT by furnishing details in the VAT portal.

  • Who is eligible for VAT registration?

Businesses that meet the annual supplies threshold limit prescribed by the authorities should register under VAT. Read Who Should Register Under Oman VAT? To know more.

  • How do I get a VAT registration certificate online?

After successful VAT registration, the VAT certificate will be available for download on the VAT portal.

  • Who should register for VAT in Oman?

Businesses that meet the annual supplies threshold limit prescribed by the authorities should register under VAT. Read Who Should Register Under Oman VAT? To know more.

  • Why is VAT registration required?

VAT registration is required to levy, collect and remit VAT to the authorities. It also enables you to claim the VAT paid on purchases and expenses. Read Business Benefits of Voluntary VAT Registration to know more

  • What happens if you charge VAT but are not VAT registered?

    Only VAT registered businesses should charge VAT. Charging without VAT registration is a offence and will be liable for penalties.

  • How much VAT can I claim back?

You can claim VAT on all the purchases and expenses related to making taxable supplies and running the business.

Know more about Oman VAT

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