VAT in Oman

VAT-Implementation-in-oman

Oman will announce a value-added tax (VAT) system associated with the GCC VAT Framework with effect from April 2021. The standard rate of VAT will be 5%, making it one of the lowermost rates in the world. It is consistent with the GCC Unified Agreement with provisions for zero-rating and exceptions in the Oman VAT Law. Oman turns out to be the fourth Gulf Cooperation Council (GCC) member state to implement VAT, along with the UAE, Kingdom of Saudi Arabia, and Bahrain.

VAT execution in Oman

The online registration for VAT in Oman lives from 1st February 2021 until 15th March 2021 for taxable individuals with yearly supplies beyond or likely to exceed One million (OMR). The voluntary registration will also be accessible for taxable individuals with yearly supplies or expenses beyond or expected to exceed (19.250) OMR. The registration should be done through Oman’s official Tax Authority’s Online Portal.

In the implementation of Value Added Tax Law, one must register with the Tax Authority according to the given data:

CategoryRegistration Due DateEffective Date of Registration
If the cost of annual goods surpasses or is likely to go beyond 1,000,000 Omani RialsFebruary 1 – March 15, 2021April 16, 2021
If the cost of annual goods is between 500,000 and 1,000,000 Omani RialsApril 1-  May 31, 2021July 1, 2021
If the yearly value of goods is between 250,000 and 499,999 Omani RialsJuly 1 – August 31, 2021October 1, 2021
If the yearly value of goods is between 38,500 and 249,999 Omani RialsDecember 1 – February 28, 2022April 1, 2022

Conclusion

With VAT being implemented throughout Oman on April 2021, industries have a limited period to get set for VAT. Industries or businesses in Oman should self-assess their VAT registration responsibility in Oman. Therefore, every business should keep VAT records of at least ten years from the end of the year to which they are associated for review. VAT returns must be filed electronically and are estimated that the VAT period will be a minimum of one month, and VAT expenses and returns must be filed within 30 days of the completion of the tax period.  VAT being on the approach of execution, it is very crucial for a business to become tax compliant. Business holders can be well-prepared with a complete view of their business transactions and VAT compliant with the help of TallyPrime VAT.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.