Country-specific updates: Oman

Staggered VAT implementation

On 5 January 2020, the Oman Tax Authority released an instructive guidance on how to prepare for VAT together with guidance on VAT Registration in the Sultanate. The guidance on the VAT registration confirms that Oman will follow the approach of two of the other implementing states (Saudi Arabia and Bahrain) and introduce a phased registration scheme.

The phased registration will be depend on the revenue of the taxable person and will specifically be as follows:

• Revenue exceeding OMR1 million: registration period February 2021- mid-March 2021 (Deadline mid-April 2021)
• Revenue between OMR500,000 and OMR1 million: April 2021 to June 2021 (Deadline 1 July 2021)
• Revenue between OMR250,000 and OMR499,000: July 2021 to September 2021 (Deadline 1 October 2021)
• Revenue between OMR38,500 and OMR249,000: December 2021 to March 2022 (Deadline 1 April 2022)

Businesses that meet the threshold for voluntary VAT registration may apply to register anytime on or after 1 February 2021.

DLA Piper comment: Businesses operating in Oman are advised to consider the Omani VAT implementation and its immediate implications. Structures and supply chains should be reassessed and contractual arrangements reviewed.