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Exempt supplies and registration

We only make exempt supplies. Do we register?

The situation

Under general VAT principles, exempt supplies are not taxable supplies, so they do not count toward the registration threshold. Confirm the exempt list in the VAT Law.

The law

  • VAT Law, Royal Decree 121/2020: 5 percent VAT; mandatory registration above OMR 38,500, voluntary above OMR 19,250; quarterly returns due 30 days after the quarter

What it means for you

If all your supplies are exempt, you do not cross the mandatory threshold through them. You also cannot recover input VAT on related costs. Check carefully which supplies are exempt under the law.

What to do

  1. List supplies by VAT treatment.
  2. Exclude exempt supplies from the test.
  3. Register only if taxable supplies cross the threshold.
  4. Review yearly.

We can do this for youVAT registration (mandatory, voluntary and non-resident): OMR 120

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