TaxSavvyOM

VAT at setup

Should a new company register for VAT immediately?

The situation

VAT registration is mandatory above OMR 38,500 over 12 months, including the forward looking test.

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 you expect taxable supplies above OMR 38,500 within the next 12 months, the look forward test means you should register early. Voluntary registration above OMR 19,250 can help you recover VAT on set up costs. See OM-VAT-01.

What to do

  1. Forecast sales.
  2. Test thresholds.
  3. Register.
  4. Set up invoices.

We can do this for youCompany setup on Invest Easy with tax card registration: OMR 900

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