VAT law clarity with executive decisions

Posted on    09 January 2021
VAT law clarity with executive decisions

Oman Tax Authority issued three executive decisions following provisions of VAT Act with Royal Decree No. 121/2020 related to the implementation of VAT. The same is said to roll out on April 16th 2021.


Decision 1:

Time limit for compulsory and optional registration under VAT is given under Article (55) of the Act. The mandatory limit is set at 38,500 OMR while that for optional is 19,250 OMR. Registration is to be obtained if the annual value of taxable supplies exceeds or is expected to exceed the threshold mentioned. These limits are in line with GCC Unified VAT Agreement.

Decision 2:

The due date for application for registration under VAT would be applicable in two phases. The first phase being for persons with taxable supply which exceeds or is expected to exceed 10,00,000 OMR while the second would be for persons whose taxable supply exceeds or is expected to exceed 5,00,000 OMR annually. Optional registration can also be seeked by small and medium enterprises.

Decision 3:

The Authority rules out certain Food commodities to be subject to VAT at zero percent. There are 94 tariff items which follow this exception which includes but are not limited to food items such as Meat, fish and poultry, Dairy and dairy products, Fresh eggs, Vegetables and fruits, Coffee, tea and cardamom, Grain, Olive, Sugar, Children's food preparations, Bread, Bottled drinking water and Table salt

Source: Tax Oman

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