Registration for VAT in Oman in a phased manner
Oman VAT would be implemented from 16th of April 2021 and the registration process will start from 1st of February 2021. The VAT Registration process has been scheduled in four phases starting from 01-02-2021 and completing by 28-02-2022. This would give some time for the small and medium businesses to prepare and equip themselves with the infrastructure of tax invoices, bookkeeping compliances as per the requirements of the VAT law.
Businesses having annual supplies of more than OMR 1,000,000 for the last 12 months, or expects that their turnover for the next 12 months exceeds the threshold should mandatorily register themselves for VAT before 15th of March 2021 and start imposing VAT on their supplies from 16th of April 2021.
However businesses can also voluntarily register themselves for VAT if their annual supplies is above a minimum threshold of OMR 19,250.
The second phase of registrations will start from 01st April 2021 and continue till 31st May 2021 for businesses whose annual sales fall between OMR 500,000 and 1,000,000. These business will have to impose VAT on their supplies from 01st of July 2021.
The third phase of registrations will start from 01st July 2021 and continue till 31st August 2021 for businesses whose annual sales fall between OMR 250,000 and 499.999 . These businesses will have to impose VAT on their supplies from 01st of October 2021.
The fourth and final phase of registrations will start from 01st of December 2021 and continue till 28th of February 2022 for businesses whose annual sales fall between OMR 38,500 and 249,999. These businesses will have to impose VAT on their supplies from 01st of April 2022.
