09 Jan 2021
VAT Implementation in Sultanate of Oman
VAT law comes into force in Oman from April 2021 following Royal Decree No. 121/2020.
The country will apply VAT at the standard rate of 5%. Oman becomes the fourth Gulf Cooperation Council (GCC) member state to implement VAT, following the UAE, Kingdom of Saudi Arabia and Bahrain.
If taxable supplies by a business resident in Oman exceed the mandatory registration threshold either:
- In the month in which the VAT law has been released plus 11 months preceding that month; or
- In the month in which the VAT law has been released plus 11 months succeeding that month, the business should be ready to VAT-register as soon as the registration deadline is announced by the Authority.
The standard VAT rate (5%) covers the supply of all goods and services in Oman, except for certain exempted categories and cases.
VAT Payers in Oman will need to keep VAT records for a minimum of 10 years and will need to be made available for review at any time.
VAT returns must be filed with the tax authority electronically and VAT payments and returns should be filed within 30 days of the end of the tax period.