TaxSavvyOM

Mandatory VAT threshold

When must my business register for VAT in Oman?

The situation

Registration is mandatory when taxable supplies exceed OMR 38,500 over 12 months, looking back over the current and previous 11 months or forward over the next 11.

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

Monthly sales of OMR 3,500 add up to OMR 42,000 a year, so registration is needed. If you expect a big contract to push you over, the look forward test applies too. Apply as soon as you see you will cross.

What to do

  1. Total taxable sales for the last 12 months.
  2. Check the next 12 months forecast.
  3. Apply on TMS if over OMR 38,500.
  4. Update invoices once registered.

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

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