What does it mean for businesses in Oman?
- In the month in which the VAT law has been released plus 11 months preceding that month; or
- In the month in which the VAT law has been released plus 11 months succeeding that month, the business should be ready to VAT-register as soon as the registration deadline is announced by the OTA.
- Certain food items that will be stipulated in a separate ministerial decision;
- Medicines and medical equipment;
- Investment gold, silver and platinum;
- International or intra-GCC transport of goods, passengers and related services;
- Supply of aircraft or vessels designated for rescue and assistance by air or sea;
- Crude oil, oil derivatives and natural gas;
- Export goods and services as well as the re-export of temporary imported goods;
- Supply of air, sea and land means of transport for the transportation of passengers and goods for commercial purposes and related services; and the
- Supply goods or services in suspension positions under the GCC unified customs law.
- Financial services;
- The supply of preventive and healthcare services and associated goods and services;
- The supply of educational services and related goods and services;
- The supply of peer land;
- Resale of residential buildings;
- Local transportation;
- Supply of residential buildings by renting;
- Importation of goods, if the final destination country is exempt from VAT or subject to a zero-rate;
- Diplomatic, international institutions;
- Goods and services for military services;
- Imports of personal items and gifts carried in travellers’ personal luggage and with foreign people coming to Oman for the first time;
- Supplies for non-profitable charitable societies; and
- Returned imported goods.
Record-keeping and filing obligations
Penalties for non-compliance with VAT in Oman
- Persons failing to register within the required period or providing incorrect information face prison for between one and three years and will be penalised a maximum OMR 20,000 ($51,952).
- Persons failing to submit a VAT return within the required period will face prison for between two months and one year and will be penalised a maximum OMR 10,000.
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