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VAT Registration in Oman

VAT Registration in Oman

VAT registration in Oman became mandatory in 2021 and it is now based on the taxable company’s revenue. Both local and foreign companies operating in the Sultanate are required to observe the registration requirements.

Our tax lawyers in Oman are able to assist local and foreign companies that need to make this registration in 2024. If you are planning to start the company formation process this year and launch your business in Oman, our team can assist you each step of the way.

Companies with a Commercial Registration Number (CRN) will follow a slightly different process for Omani VAT registration, as most of their information is already submitted to the authorities.

In all cases, companies follow a few steps, starting with calculating the annual value of supplies, in order to commence VAT registration Oman.

We also offer complete legal services in a number of other matters, related to taxation, as well as other commercial and business issues.

If you need more information about VAT registration in 2024, you can always reach out to our team.

VAT registration in Oman for a foreign company

A foreign company in Oman is required to register for value-added tax purposes when it is subject to this tax through the nature of the services it provides in the Sultanate.

For taxable entities without a place of residence in Oman, there is no minimum income threshold, and these companies are required to register for VAT.

VAT registration Oman for foreign companies, those without a place of residence in the Sultanate, is commenced once the legal entity submits an application form containing information similar to those required for a resident company that has not been issued a Commercial Registration Number.

In most cases, the documents for Omani VAT registration for a non-resident company are the following:

  • the company’s identification information, its business activities, as well as its tax identification number in its country of origin;
  • information about the company’s principal officer or assigned responsible person; this person must be an Omani resident; our lawyers in Oman can help you with more information and representation services, as needed;
  • the date of the first expected supply for VAT purposes and other relevant information such as bank account information and details on the company’s accounting year-end.

The applications for registration are reviewed on a case-by-case basis by the Omani Tax Authority and they can request more information if they see fit.

Our tax lawyers can help foreign companies prepare their applications for value-added tax registration when this step becomes necessary for their activities in Oman.

VAT registration in Oman for a local company

Companies are required to register for value-added tax in Oman when their taxable turnover exceeds OMR 38,500 for the ongoing month and the preceding 11 months or for the current month and the 11 months that will follow it.

VAT registration in Oman is possible on a voluntary basis for taxable companies with a place of residence in Oman that exceeds or is expected to exceed the annual revenue limit of OMR 19,250. Voluntary registrations can be submitted at any time.

Our accountant in Oman provides complete VAT filing and reporting solutions for companies. You can reach out to us for more information about our services.

Omani VAT registration issues to consider in 2024

Resident and non-resident companies in Oman subject to VAT registration should consider the following:

  • the standard value-added tax rate in Oman is 5%; a reduced rate of 0% also applies;
  • examples of exempt supplies include financial and healthcare services, educational services, local passenger transportation, and others;
  • VAT registration in Oman for local companies is performed via electronic registration for this purpose with the Tax Authority; if approved, a VAT registration certificate is issued for the applicant;
  • the VAT registration certificate needs to be displayed in a visible location; companies are issued a single registration number, irrespective of their number of branches.

No value-added tax increases were planned by the Omani authorities for 2024, therefore, the aforementioned 5% standard rate remains in place.

Our team can give you more details about VAT registration Oman, as well as about other taxes applicable to local and foreign companies.

We remind investors that the corporate taxation rules also include the corporate income tax rate of 15%, applicable to all businesses. For the purpose of taxation, the taxable income is the gross income for the respective tax year, after deductions and adjustments. There is no withholding tax on dividends payable in Oman (either by individuals, or companies). Companies in Oman also need to observe the requirements for social security contributions.

Foreign investments in Oman

Are you interested in opening a company in Oman and making the needed tax and VAT registration steps in 2024? Our team summarizes the favorable evolution of the Sultanate’s economy, as well as the situation of foreign direct investments:

  • Notable FDI amounts from European countries include a total investment of 10.353 million Omani Rial from the United Kingdom in Q1, 2023, and 291.500 million Omani Rial from the Netherlands, along with 181.900 million Omani Rial from Switzerland in the same first quarter of 2023;
  • The United States had a total foreign direct investment value of 3,508.300 million Omani Rial in the first quarter of 2023, compared to 2,735.800 million Omani Rial in the fourth quarter of 2022.

We also offer legal assistance to those who are interested in immigration to Oman.

Contact us for complete assistance during the VAT registration process and for legal help in case you want to open a company in Oman.