Insights

VAT is now live in the Sultanate of Oman

Simplified tax invoices

The OTA has allowed VAT registrants to issue simplified VAT invoices from 16 April 2021, as per the following conditions:

  • The VAT registrant must adhere to the requirements for a simplified VAT invoice as per Article 148 and other relevant Articles of the Oman VAT Executive Regulations.
  • The VAT registrant must inform the OTA in writing of the use of simplified VAT invoicing on or before 15 July 2021. They must also provide examples of the simplified VAT invoices that are issued.
  • The VAT registrant must include the following details on the simplified tax VAT? invoice:
    • Description of supply or supplies made which must be sent to the OTA on the following email: vat@taxoman.gov.om
    • Define the VAT amount to 3 decimal places in Omani Riyals (OMR).

Registration by non-resident person

The OTA recently issued a guide on registration by non-resident person which outlines the procedure for registration either by appointing a resident Responsible Person, a non-resident Responsible Person or a Tax Representative.

Procedure for registration where a Responsible Person is a resident in Oman, or a Tax Representative is appointed:

  • Download and complete the registration application form for non-resident persons available on the tax portal.
  • State the Responsible Person or Tax Representative in the application and attach the proof of appointment.
  • Provide the details of an Omani bank account (including the bank’s full name and address and identifying a SWIFT or other codes).
  • State the value of the taxable annual supplies in the registration application.
  • Submit the application via email whilst attaching the required documentation.
  • After final approval, the OTA will send the successful registrant a username and password to access the account. 

Procedure where a Responsible Person is a non-resident in Oman, or a Tax Representative cannot be appointed:

  • A person who is a non-resident in Oman can register directly and specify a Responsible Person that is a related person.
  • The applicant must provide a copy of a bank guarantee or fiscal undertaking in favour of the OTA. The bank guarantee or fiscal undertaking must be issued from a bank in Oman in the name of the OTA for a value not less than 5% of the taxable annual supplies and must be valid for one year.
  • The person must provide details of a bank account in Oman and pay the tax due in Omani Rials. We have asked the OTA to clarify this point in order to see if an Omani Rials account outside Oman could also be acceptable.
  • Procedures for VAT registration under this process include:
    • Download and complete the registration application form for a non-resident persons available on tax portal.
    • State the Responsible Person in the application and attach proof of appointment and how he/she is related to the applicant.
    • Provide the details of a Omani bank account (including the bank’s full name and address and identifying a SWIFT or other codes). This point is being clarified as mentioned above.
    • State the value of the taxable annual supplies in the registration application and amount of bank guarantee not less than 5% of the taxable annual supplies.
    • Attach the bank guarantee issued by a bank in Oman which must be issued in the name of: The OTA and address to, P.O. Box: 285, Muscat, Postal Code: 100 Sultanate of Oman
    • Submit the application via email whilst attaching the required documentation.
    • After final approval, the OTA will send the successful registrant a username and password to access the account. 

Ongoing VAT registration

The OTA has started the second wave for VAT registration for businesses with taxable supplies of more than OMR 500,000. However, registration for the first wave of businesses with taxable supplies exceeding OMR 1,000,000 is still ongoing as the OTA is still accepting registration applications.

As a reminder, registration applications must be submitted through the electronic portal, to avoid any penalties.

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