COMPANIES REQUIRE CERTIFICATE TO COLLECT VAT FROM CUSTOMERS

Firms charging VAT from customers without a certificate of registration from the Tax Authority would be penalised under the law

Companies in Oman need to have a certificate of registration from the Tax Authority before charging customers value added tax (VAT) for goods and services.

According to an official at the organisation, those who do add the five per cent VAT charge to customers without this certificate are subject to penalties under the law.

“This includes all commercial enterprises, including SMEs, that offer goods or services subject to VAT,” he said.

“If owners of establishments that are not registered with the authority do buy goods from suppliers who have imposed VAT on them, they must keep all of the invoices of goods received, inclusive of VAT prices.

“The business must then register with the Tax Authority to obtain a certificate of registration, and commit to submitting tax declarations on time,” added the official.

VAT in Oman came into effect on April 16, 2021. It is calculated at the rate of five percent of goods and services purchased by customers, who need to pay the tax.

Under rules established by the government, the first round for companies to register for VAT took place between February 1 and March 15, 2021.

Although this period has now passed, companies that did not register themselves during this window must do so during the second, which runs from April 1 to May 31, 2021.

Certificates

Companies can only charge VAT to customers after the effective date of registration listed on their certificates, even if they have applied to register at an earlier date.

They can also claim VAT refunds for taxes paid to their suppliers by submitting all of the related documents to the Tax Authority, to help calculate the amounts previously paid to those who have provided them taxable goods and services.

Companies whose taxable goods and services are valued at more than OMR38,500 per annum have to register on www.taxoman.gov.om. They need to login, and then follow the required procedures online, after which the VAT certificate can be printed.

Those that are not listed on the commercial register, however, must first download the Excel file from the website, and then email it to vat@taxoman.gov.om, along with the necessary documents. If approved, the Tax Authority will issue the registration certificate.

The official added that e-commerce companies that have taxable goods and services valued above OMR38,500 also have to register, while those valued at between OMR38,500 and OMR19,250 can register if they choose to.