Oman companies must adhere to VAT implementation schedule


On April 16, 2021, and after years of planning, VAT was introduced in Oman. Following their Gulf Cooperation Council (GCC) partners, a 5% standard VAT rate was put into force, while the VAT registration mandatory is mandatory for those companies that exceed a certain turnover threshold.


These thresholds were tied to a specific date of registration which is as follows:

Value of annual supplies Timeline for registration Effective date of registration
Exceeding RO 1 million 1 February 2021 to 15 March 2021 Friday, 16 April 2021
Between RO 500,000 to RO 1 million 1 April 2021 to 31 May 2021 Thursday, 1 July 2021
Between RO 250,000 to RO 499,999 1 July 2021 to 31 August 2021 Friday, 1 October 2021
Between RO 38,500 to RO 249,999 1 December 2021 to 28 February 2022 Friday, 1 April 2022


With his schedule in mind, last Tuesday, the Oman Tax Authority stated through a tweet that no company is entitled to impose VAT before the effective date of registration shown in their tax certificate, although they have already been granted a VAT ID number.


For those companies that are not yet registered, they can determine their obligations by taking into consideration the taxable turnover made in the previous 11 months or the expected one in the following same period of time. These tests should be carried out on a monthly rolling basis by an unregistered person engaged in economic activity.


For non-resident businesses who make supplies in the Sultanate of Oman, VAT registration is mandatory.


If you think these developments impact your business do not hesitate to contact our VAT experts.



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