Oman | العربية

Value added Tax is implemented in Oman with effect from 16th April 2021. Value-Added Tax or Tax is a tax on the consumption or use of goods and services levied at the point of sale. Tax is a form of indirect tax and is used in more than 180 countries around the world.

Tax is charged at each step of the ‘supply chain’. End consumers generally bear the Tax cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of the Oman Tax Authority.

Only Tax registered businesses will need to charge and account for Tax.

Registration

Any business, which exceeds mandatory or voluntary registration thresholds, may be required or may be able to register for Tax.

The definition of business embraces most forms of activity and includes any activity conducted regularly or on an ongoing basis, e.g. industrial, commercial, professional, trade, etc.

MANDATORY REGISTRATION

Any business that meets the below criterion must register,

  • The total value of their taxable supplies made within Oman exceeds the mandatory registration threshold over the previous 12 month period, or
  • They anticipate making taxable supplies with a value exceeding the mandatory registration threshold in the next 30 days.
  • The mandatory registration threshold is RO 37,500
VOLUNTARY REGISTRATION

Any business that meets the below criterion MAY register (and does not fall under Mandatory Registration threshold),

  • The total value of their taxable supplies or taxable expenditure in the previous 12 months exceeds the voluntary registration threshold, or
  • They anticipate that the total value of their taxable supplies or taxable expenditure will exceed the voluntary registration threshold in the next 30 days.
  • The voluntary registration threshold is RO 18,750.
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