Oman VAT compliance | Less than 60 days until the go live date

Value Added Tax (VAT) will be implemented in Oman on 16 April 2021. Leading up to the VAT go-live date, it is crucial for businesses and individuals to ensure they are registered for VAT and to prepare for day one compliance.

VAT registration

The VAT registration process in Oman commenced on 1 February 2021. All eligible businesses generating or expected to generate more than OMR 1 million in annual vatable supplies have a mandatory obligation to register for VAT within the period from 1 February 2021 to 15 March 2021. A business may also register for VAT on a voluntary basis with annual actual or expected supplies/expenses of OMR 19,250. The effective date of VAT registration is 16 April 2021.

Below is a summary of the revenue thresholds and registration timelines. Please note that non-resident businesses who need to register must do so before 16 April 2021. 

Value of annual supplies
(actual or expected) 
Period to file the
Registration date

More than
OMR 1,000,000

1 Feb 2021 to
15 Mar 2021

16 Apr 2021

OMR 500,000 to
OMR 1,000,000

1 Apr 2021 to
31 May 2021

1 Jul 2021

OMR 250,000 to
OMR 499,000

1 Jul 2021 to
31 Aug 2021

1 Oct 2021

OMR 38,500 to
OMR 249,999

1 Dec 2021 to
28 Feb 2022

1 Apr 2022


VAT compliance

VAT returns are usually filed on a quarterly basis and are expected to be due starting April 2021. Registrants need to ensure that they have the appropriate accounting processes and procedures in place. It is possible that the Oman Tax Authority (OTA) may release VAT simplification and easement details during the first transition year, but this should not be relied upon. It is therefore the registrant’s responsibility to manage their VAT compliance in accordance with the Oman VAT law.

How can Deloitte help?

Our dedicated VAT compliance services team has the knowledge and experience to provide VAT registration and compliance support to businesses in Oman. We would also be pleased to assist your business with its VAT return filings to ensure compliance.  

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