Oman VAT Decree Law Unofficial Translation by Brooks FinTech Accountancy-19 Oct 2020

Brooks FinTech Accountancy Unofficial Translation of Decree Law no.
www.brooksgulf.com 121/2020 of the Sultanate of Oman
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Unofficial Translation by Brooks Gulf LLC

(Note: The page numbers on this translation have been kept the same as in the original Decree)
___________________________________________________
The Official Gazette Issue (1362)
Royal Decree
No. 121/2020
Issuance of the value-added tax law
We, Haitham Bin Tariq, Sultan of Oman
After perusal of the Basic Law of the State,
And the Royal Decree No. 67/2003 implementing the common customs law for the countries of the Cooperation Council for the Arab
States of the Gulf,
And after the presentation to the Oman Council,
Based on the public interest,
We drew what is to be in effect.
Article one
The value-added tax law, attached.
Article two
The Head of the Tax Authority shall issue the executive regulations of the attached law within a period not exceeding (06) six months
from the date of its implementation, and he shall also issue the necessary decisions to implement its provisions.
Article three
All that contradicts the attached law, or contravenes its provisions shall be void.
Article four
This decree shall be published in the official gazette, and it shall be enforced after (180) one hundred and eighty days from the date
of its publication.
Issued on: Safar 24, 1442 A.H.
Corresponding to: October 12, 2020 AD
Haitham Bin Tariq
Sultan of Oman
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Value Added Tax Law

Chapter 1
Definitions and general provisions
Article (1)
In the application of the provisions of this law, the following words and expressions shall have the meaning indicated next to each of
them, unless the context of the text requires another meaning:
- the Authority:
The Tax Authority.
- Chief:
Chief of the Authority
- Directorate General of Customs:
The Directorate General of Customs at the Royal Oman Police.
- Council:
The Cooperation Council for the Arab States of the Gulf.
Unified Customs Law:
Common Customs Law of the Cooperation Council for the Arab States of the Gulf
- Tax:
The value-added tax that is imposed according to the provisions of this Law on import and supply of goods or services at every stage
of production and distribution.
- Additional tax:
A tax levied at the rate of (1%) one percent of the value of the unpaid tax for each month of delay, or part thereof, from the end of
the period specified for payment until the date the payment is made.
- Person:
A natural person or legal person, which includes joint venture, and partnership agreement that is held outside the Sultanate, and
does not take the form of a company.
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- Responsible person:
Any person who is related to the person who is subject to tax in any relationship, and replaces him in carrying out his obligations, the
provisions of this law are applicable to him in this regard.
Taxable Person:
The person who carries out any activity in an independent capacity with the aim of generating income, and is registered with the
Authority, or is bound to be registered with it, in accordance with the provisions of this law.
- Mandatory registration threshold:
The minimum value of actual supplies, due to which the person making taxable supplies becomes obligated to register for tax
purposes.
- Voluntary registration threshold:
The minimum value of actual supplies, which qualify the person to apply for registration for tax purposes.
- Tax Return:
Specific data and information for tax purposes, which the taxpayer must take into account, submitted to the Authority in accordance
with the form prepared for this purpose.
Tax Invoice:
Every written or electronic document that the taxable person must issue, and in which details of supply are written in accordance
with the provisions of this law.
- Taxable trader:
The taxable person whose main activity is the distribution of oil, gas, electricity or water.
Associated Persons:
Two or more persons, if either or any of them has power of influence, and governs other(s) with administrative authority that enables
him or them to influence the affairs of the other person(s), financially, economically, or organizationally, and includes persons subject
to the authority of a third person that enables him to influence their business financially, economically or organizationally.
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- Tax year:
Twelve (12) twelve months beginning from the start of January and ending at the end of December of each calendar year.
- Tax Period:
The period of time for which the net tax must be calculated, and for which the tax return is submitted, according to the provisions of
Article (71) of this law.
- Activity:
The activity that takes place continuously and in a regular manner, in particular, commercial, industrial, professional, craftsman, or
service provider activities.
- Input tax:
The tax paid by the person, who is taxable in relation to goods or services supplied to him, or imported for the purpose of practicing
the Activity.
- Output Tax:
The tax due that is levied on taxable supply of goods and services.
First entry port:
The first customs point for the entry of goods into the GCC countries from abroad in accordance with the Unified Customs Law.
Final destination port:
The customs point for entry of goods into the country of final destination for these goods in the GCC countries according to the
Unified Customs Law.
- Value of taxable supply:
The value on which tax levied is calculated according to the provisions of this law.
Supply:
Supply of goods or services for a consideration, in accordance with the provisions of this law.
Intra-regional supplies:
Supplies of goods or services made from a supplier with a residence in the Sultanate to a customer, resident in one of the Council's
countries, or vice versa.
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- Taxable supplies:
Supplies on which tax is levied, either at the standard rate or at the rate of zero percent, the related input tax shall be deducted in
accordance with the provisions of this law.
Exempt supplies:
Supplies for which tax is not levied, and the related input tax is not deducted according to the provisions of this law.
- Deemed supply:
All that is considered a supply in accordance with the conditions set forth in Articles (14) and (17) of this law.
- Consideration:
All that is obtained or will be obtained by the taxable supplier from the customer, or from a third party supplying goods or services,
including tax.
- Place of Establishment:
The place of establishment of the legal person or the place of the actual management function, where major decisions are made to
conduct business, when it differs from the place of establishment.
Fixed Establishment:
The fixed location of the business other than the place of establishment in which any foreign person conducts the activity -wholly or
partially - in the Sultanate of Oman, either directly or through an agent who is subordinate to it.
- Place of Residence:
The location where the Place of Establishment or Fixed Establishment is located, or the usual place of residence of a natural person
who does not have a Place of Establishment or Fixed Establishment, or the place most closely connected to the supply if the person
has a place of residence in more than one country.
- Goods:
All physical assets, including - in particular - water and all types of energy, including electricity and gas
- Supplier:
A person who supplies goods or services.
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- Customer:
A person who receives goods or services.
- Reverse Charge Mechanism:
The mechanism by which the taxable customer is obligated to tax on behalf of the supplier, and is responsible for all obligations
stipulated in this law
- Import:
The entry of goods from outside the GCC countries to the Sultanate in accordance with the provisions of the Unified Customs Law.
Export:
The exit of the goods from the Sultanate to outside the GCC countries in accordance with the provisions of the Unified Customs Law.
- Committee:
The Tax Grievances Committee as stipulated in Article (92) of this Law.
Regulation:
The executive regulations of this law.
Article (2)
The responsible person shall be determined as follows:
1 - With regard to the sole proprietorship:
The responsible owner or manager, and in the event of imposing judicial receivership, or declaring bankruptcy, the receiver or the
bankruptcy administrator - as the case may be - is the responsible person.
2 - With regard to the Omani company:
A - a one-person company: the owner or the responsible manager.
B - Partnership or limited partnership: the partner in the company, or its director.
C - the joint venture company: the director whom the partners agree to take over the management business in the company, whether
it is from the partners, or others.
D - Joint Stock Company: Chairman of the Board of Directors or the authorized director by the Board of Directors.
E - Limited Liability Company: The director of the company, or the person responsible for management. In the case of imposing the
judicial sense or declaring bankruptcy or liquidation, the judicial guard, the bankruptcy director, or the liquidator - as the case may be
- is the responsible person.
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3- With regard to the Fixed Establishment:

A - The owner or manager.
B - The agent of the owner of the Fixed Establishment in the event that its activity in the Sultanate is practiced through an agent.
C - The judicial receiver, manager of the bankruptcy, or the liquidator in case of imposing judicial receivership, bankruptcy, or
liquidation.
4 - With regard to any person who does not have a domicile in the Sultanate, any person with a domicile in the Sultanate who has
been appointed by that person. And it is permissible, by a decision of the Chairman, to specify the qualifications that must be met by
the responsible person
Article (3)
Subject to the provisions of Article (2) of this law, the Taxable Person must appoint the Responsible Person, and notify the Authority
accordingly according to the procedures specified by the regulations of the Responsible Person, provided that the Responsible
Person is notified thereof.
Article (4)
The responsible person may not stay outside the Sultanate for a period of more than (90) ninety days within the tax year, except
after notifying the Authority of that, and obtaining its approval to appoint another official that takes his place for the duration of his
absence.
Article (5)
The units of the state's administrative apparatus and other public legal persons must provide facilitation (to the Authority) with data
and information related to the implementation of the provisions of this law whenever requested to do so.
Article (6)
Within the scope of application of the provisions of this law, the competent courts shall - upon request of the Authority, provide the
Authority with a copy of the following:
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1- The records of the seizure of the movable property and the dates set for sale, after the issuance of a judge’s execution order to
sell the same.
2- The declarations of the disclosure that the detainees deposit with them, after the declarations have been submitted.
3 - Alerts issued for execution on the property after its registration with the Registry Secretariat of the competent real estate authority,
after recording the alert.
Article (7)
Every person - undertaking the sale procedures by way of public auction of movables or real estate belonging to the taxable person
- must notify the Agency of the date set for the sale at least (10) ten days prior to its date.
Article (8)
The Authority, in the event of a request for information related to the taxable person from a licensed bank for the purpose of
implementing the provisions of this law, shall direct the request to the Central Bank of Oman for referral to the licensed bank, and
this bank shall notify the Authority directly within the period it specifies with the information related to the taxable person, while
notifying its client who is subject to tax.
Article (9)
The information and data of the taxable person enjoy complete confidentiality and may not be disclosed except in the cases legally
authorized, or with the written consent of the taxable person, or in implementation of a judgment or decision issued by the court, or
in implementation of the Committee's decision.
Article (10)
The taxable person must deliver the tax returns, financial statements, records, documents, etc. to the Authority electronically, and
they may - exceptionally - be delivered by hand or by registered mail, in the cases specified by the regulations
Article (11)
For Taxable Person or any other person notifications and decisions shall be issued by the Authority electronically, and may -
exceptionally - be notified by hand or by registered mail, in the cases specified by the regulations
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Chapter II
Levy of tax
Article (12)
Tax is imposed on the following transactions:
1- The supply of goods or services from the Taxable Person in the Sultanate, including Deemed Supply.
2 - The Taxable Customer receives goods or services from a Supplier who does not have a Residence in the Sultanate, and is not
subject to Tax therein, in cases where the Reverse Charge Mechanism is applied.
3- Import of goods.
Article (13)
Within the scope of application of the provisions of this law, the purpose of supplying goods is the transfer of ownership of goods or
disposing of them as owner, and includes - in particular - the following:
1- Assignment of possession of goods under an agreement to transfer ownership of these goods, or the possibility of transferring
them at a date later to the date of the agreement, up to the date of payment of the consideration in full.
2 - Granting of in-kind rights derived from ownership.
3- Compulsory expropriation of goods for a fee, in accordance with the laws in force.
Article (14)
Within the scope of application of the provisions of this law, the following shall be deemed to be the Supply of goods:
1- Assignment of goods for purposes other than activity, whether the assignment is made for a fee or without consideration.
2- A change in the use of goods to make non-taxable supplies.
3- Keeping goods after stopping the activity.
4- The supply of goods without charge, unless the supply is related to the activity, such as giving gifts or free samples.
In all cases, to consider it a supply of goods, it is required that the taxable person deducted the input tax related to those goods.
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Article (15)
A supply of goods is the transfer of goods - which are part of the assets of any taxable activity - from any state in the Council to the
Sultanate, or vice versa, except for the following:
1 - That the transfer of goods took place temporarily according to the conditions of temporary entry stipulated in the Unified Customs
Law.
2 - That the goods are transported as part of another taxable supply in the Sultanate, or in the country to which the goods were
transported.
Article (16)
Within the scope of application of the provisions of this law, the supply of services means any supply that is not considered a supply
of goods, and includes - in particular - grant services, assignment, and assignment of any rights, including refraining from carrying
out any activity.
Article (17)
Within the scope of application of the provisions of this law, the following shall be deemed to apply to the supply of services:
1- The taxable person's use of goods - which are part of his assets - without charge, for purposes other than activity.
2 - Supply of services without charge. In all cases, for it to be considered as a supply of services, it is stipulated that the taxable
person has deducted the input tax related to those services
Article (18)
Supplies of goods or services are not subject to tax in the following cases, in accordance with the terms and conditions specified by
the regulations:
1- A supply by any person in the tax group to another person in the same group, except for the Deemed Supply.
2 - The supply that takes place between the insurer and the insured within the framework of settling insurance claims under an
insurance contract that is subject to tax in accordance with the provisions of this law.
3 - The taxable person supplies goods or services that are part of the transfer - in whole or in part - of his activity to another taxable
person.
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Article (19)
The supply of goods or services by an agent acting in the name and on behalf of the principal is considered a supply from the
principal, except for the Supply of goods or services from the agent to the principal within the usual scope of the agent's activity. The
Supply of goods or services by an agent acting in his name and on behalf of the principal is considered a supply from the agent
Article (20)
When the taxable person receives goods or services from a supplier who has a residence in any of the GCC states, he is deemed
to be a person who supplies these goods or services to himself, and this Supply is subject to tax according to the reverse calculation
(assignment) mechanism. And in the event that the taxable person receives services from a supplier who does not have a Residence
in any of the GCC states, he is considered as one who supplies these services to himself, and this supply is subject to Tax according
to the Reverse Charge Mechanism
Chapter III
Due tax
Article (21)
The place of supply of goods shall be in the Sultanate, in the following two cases:
1 - If the goods have been placed at the disposal of the customer in the Sultanate, with regard to supply without transportation or
dispatch.
2 - If the goods were in the Sultanate when the process of transporting them or sending them started by the Supplier or for the
account of the customer, in relation to the supply with the transport or dispatch. And determining the place of supply of intra-GCC
transactions that take place between the Sultanate and one of the GCC countries, or vice versa, shall be in accordance with the rules
specified by the regulations.
Article (22)
As an exception to the provision of Article (21) of this law, the place of supply of oil, gas and water that takes place through pipelines,
and the supply of electricity, shall be according to the following:
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1- If the supply is from a Taxable Person who has a Residence in one of the GCC countries to a taxable merchant with a Residence
in the Sultanate or vice versa, then the place of supply is the place of Residence of the Taxable Supplier.
2- If the supply is to a person other than a trader subject to tax, then the place of supply is the place of actual consumption.
Article (23)
The place of supply of services shall be in the Sultanate if the Taxable Supplier has a place of Residence there, provided that the
Customer is neither subject to Tax nor registered in one of the GCC states, and unless the place of supply is the place of Residence
of the Customer.
Article (24)
As an exception to the provision of Article (23) of this law, the place of supply of the following services shall be according to the
following:
1- Services of transporting goods, passengers and related services, at the place where the transport process begins.
2- Services related to real estate, in the place where the property is located.
3- Leasing services and means of transportation by a Taxable Supplier to a non-Taxable Customer, in the place where the means
of transportation is placed at the Customer's disposal.
4- Telecommunication services and services provided electronically, in the place of actual use of these services, or to benefit from
them.
5- Catering and hotel services, undertakings to provide food and beverages, cultural, artistic, sports, educational and entertainment
services, and services related to goods transferred and supplied to a non-Taxable Customer, in the place of their actual
implementation.
Article (25)
The place of import of the goods shall be in the Sultanate, in the following two cases:
1- If the Sultanate is the first port of entry for imported goods.
2 If the Sultanate is the place where the imported goods are released from the suspended situation, if the imported goods are subject
to any customs tax suspension situation in accordance with the provisions of the Unified Customs Law.
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Article (26)
The Tax is due on the supply of goods or services on any of the following dates, whichever is earlier, as specified by the regulations:
1- Date of supply.
2 - The date of issuing the Tax invoice.
3 - The date of receipt of the consideration - in part or in full - and within the limits of the amount received.
Article (27)
The Tax is due on supplies that lead to the issuance of invoices or payment of consideration in succession on the date of payment
specified in the invoice or the date of payment, whichever is earlier, and it is due at least once every (12) consecutive months.
Article (28)
The Regulation specifies due dates for Tax on the supply of prepaid telecom cards, purchase vouchers, or other similar supplies.
Article (29)
The Tax is due upon Import on any of the following dates, as the case may be:
1- The date of importing the goods.
2- The date of entry of goods at the first port of entry in the application of the provisions of the Unified Customs Law.
3- The date on which the imported goods were released upon the end of the state of tax suspension, if they were subject to any
customs tax suspension status in accordance with the provisions of the Unified Customs Law.
Article (30)
The Tax is due when any person issues an invoice in which he records the Tax amount on the date that invoice was issued.
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Chapter IV
Taxable Value
Article (31)
The Taxable Value is determined by the value of the consideration without the Tax, and the value includes all the expenditures that
the Taxable Supplier imposes on the Customer, and any fees or Taxes due as a result of the supply except for the discounts,
subsidies, grants or amounts specified by the Regulations.
Article (32)
The Taxable Value of the value of the supply of goods or services between Associated Persons is determined on the basis of the
market value, in the event that the value of the Supply is less than the market value, as specified by the Regulations.
Article (33)
The Taxable Value in relation to the nominal supply is determined according to the purchase value, or cost. In the event that it is not
possible to determine the purchase value or the cost, the Taxable Value shall be determined according to the market value, as
specified by the Regulations.
Article (34)
The Taxable Value of imported goods shall be determined at the customs value specified in accordance with the Unified Customs
Law, plus any other taxes or fees that are due on the Import of goods.
Article (35)
The Taxable Value of goods temporarily exported outside the GCC countries to complete their manufacture or repair upon re-import
is determined by the value of the increase that has occurred in accordance with what is stipulated in the Unified Customs Law.
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Chapter V
Calculation of Tax
Article (36)
Subject to the provisions of Articles 51, 52, and 53 of this Law, the Tax is imposed on the Import and Supply of Taxable goods or
services at the rate of (5%) five percent of the Taxable Value.
Article (37)
The Taxable Person is obligated to display the prices of goods and services including Tax.
Article (38)
The Tax due and payable to any Taxable Person for any Tax Period is calculated by the amount of the increase in the total Output
Tax value, minus the total value of the Input Tax allowed to be deducted during that period. The Taxable Person shall have the right
to recover it if the total value of the Output Tax is less than the total value of the Input Tax during that period, or to carry it over and
deduct it from any Tax due for any subsequent Tax Period.
Article (39)
Tax is calculated with respect to the sale of used goods within the framework of the Taxable Person's usual activity in accordance
with the profit margin mechanism, in the manner specified by the Regulations.
Article (40)
The Taxable Person has the right to amend the value of the Tax due in the following cases, according to the conditions and controls
specified by the Regulations:
1- Cancellation of the supply, or partial or complete rejection of the Supply.
2- Reducing the value of Supply.
3 - It was not possible to collect the consideration partially or completely.
4 - Any other cases specified by the Regulations.
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Article (41)
The Taxable Person has the right to deduct the Input Tax for any Tax Period, which it incurs on his Taxable Supplies or on the goods
that he Imported during that period, or when he is obligated to pay the Tax as the recipient according to the Reverse Charge
Mechanism.
Article (42)
Input Tax is deducted in the event that the Taxable Person makes Taxable Supplies and other Tax-exempt supplies, or if the Taxable
Supplies or imported goods are partially used for purposes other than the activity, according to the conditions and procedures
specified by the Regulations.
Article (43)
Input Tax may not be deducted for goods that are prohibited from importing and/or exporting in accordance with the legislation in
force.
Article (44)
The Taxable Person may request that the Input Tax deduction for any Tax Period be postponed to a subsequent Tax Period, and
his right to claim the deduction shall be forfeited after the expiration of a period of (3) three years from the end of the Tax Period
during which the right of deduction arose.
Article (45)
The Taxable Person is obligated to amend the Input Tax that was previously deducted upon receiving the goods and services
supplied to him in the following cases, in accordance with the conditions and procedures specified by the Regulations:
1- Cancellation of the Supply partially or completely.
2- Reducing the value of Supply.
3- Failure to pay the consideration in part or in full.
4- Change the use of capital assets. The Taxable Person is not obligated to adjust the Input Tax in cases where goods are damaged,
lost or stolen, or if the goods are used as commercial samples or gifts.
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Article (46)
The Taxable Person has the right to deduct the Input Tax that he previously incurred on his Taxable Supplies, or on the goods he
imported during the period preceding the registration date, in accordance with the terms and conditions specified by the Regulations.
Chapter VI
Exempt supplies subject to the zero rate
Article (47)
The following supplies are exempt from Tax, according to the conditions and controls specified by the Regulations:
1 - Financial services.
2- Healthcare services and related goods and services.
3 - Education services and related goods and services.
4- Undeveloped lands (bare lands).
5- Resale of residential properties.
6- Domestic passenger transportation.
7 - Renting real estate for residential purposes.
Article (48)
The following imported goods are exempt from Tax:
1- imported goods in cases where the Supply of these goods is exempt from Tax or subject to Tax at the zero rate at the final
destination.
2 - Goods imported to diplomatic and consular bodies and international organizations, and to heads and members of the two types
of missions: diplomatic and consular accredited to the Sultanate, on condition of reciprocity.
3- Imports for the armed forces and security forces in all their sectors, such as ammunition, weapons, military equipment and means
of transport, and their parts.
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4 - Personal effects and used household items brought by citizens residing abroad, and foreigners coming to reside in the country
for the first time.
5- Supplies of non-profit charitable societies.
6- Returned goods. The exemption shall be in accordance with the conditions and controls stipulated in the Unified Customs Law.
Article (49)
Personal belongings and gifts that come with travelers coming to the Sultanate, and supplies for people with special needs, are
exempt from Tax, in accordance with the rules and conditions specified by the Regulations.
Article 50
Payment of Tax on imported goods shall be suspended in any of the cases in which the customs Tax is suspended on these goods
in accordance with the provisions of the Unified Customs Law.
Article (51)
The following supplies are subject to Tax at the rate of zero percent, within the limits, conditions and situations specified by the
Regulations:
1- The Supply of food commodities specified by a decision of the Chairman.
2 - Supply of medicines and medical equipment in accordance with the controls to be determined by a decision of the Chairman, and
after coordination with the competent authorities.
3 - Supply of investment gold, silver and platinum.
4- Supplies of international transport and interchange of goods or passengers, and the Supply of related services.
5- Supply of marine, air and land transportation means intended for the transport of goods and passengers for commercial purposes,
and the Supply of goods and services related to transport.
6 - Supply of rescue and aid aircraft and ships.
7 - Supply of crude oil and its petroleum products, and natural gas.
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Article (52)
Supplies made outside the GCC are subject to Tax at the zero rate, according to the conditions specified by the Regulations, in the
following cases:
1- Export of goods.
2 - The Supply of goods or services to one of the customs tax suspension situations stipulated in the Unified Customs Law, or within
it.
3- Re-export the goods that were temporarily entered into the Sultanate for the purpose of repair, restoration, transfer or processing,
and the services added to it.
4- The Supply of services by a Taxable Supplier who has a Residence in the Sultanate for the benefit of a Customer who does not
have a Residence in the GCC countries, provided that the Customer benefits from these services outside the GCC countries, with
the exception of the services stipulated in Article (24) of this law.
Article (53)
Supplies of goods or services that are exempt from Tax within the Sultanate, and that are imported outside the GCC countries, are
treated as zero-rated supplies.
Article 54
Supplies of goods or services from or to the special economic zones, or within them, shall be treated with the same treatment
established for the conditions suspending the customs tax in accordance with the provisions of this law, in the manner specified by
the Regulations.
Chapter VII
Registration
Article (55)
Every person who practices the activity and has a place of Residence in the Sultanate must register with the Authority, in any of the
following two cases:
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1- If the total value of supplies made by him at the end of any month in addition to the eleven months immediately preceding it,
exceeds the Mandatory Registration Threshold.
2- If the total value of the supplies that he is expected to achieve at the end of any month in addition to the eleven months immediately
following it, exceeds the Mandatory Registration Threshold. The determination and amendment of the Mandatory Registration
Threshold shall be by a decision issued by the Chairman after the approval of the Council of Ministers.
Article (56)
The value of supplies includes - for the purposes of implementing the provisions of this chapter - the following:
1- The value of Taxable Supplies, excluding supplies of capital assets.
2 - The value of goods and services supplied to the Taxable Person and subject to the calculation mechanism (reverse charge).
3- The value of intra-regional supplies of goods and services.
Article (57)
Every person who does not have a place of Residence in the Sultanate must register with the Authority as of the date on which he
is obligated to pay the Tax in accordance with the provisions of this law. He may appoint a Tax Representative, after obtaining the
approval of the Authority, and the Tax Representative replaces the person in all matters related to his obligations and Tax rights, and
the Regulations specify the conditions and procedures for appointing the Tax Rrepresentative.
Article (58)
Two or more persons may register with the Authority as a Tax Group, according to the conditions specified by the Regulations. The
Tax Group - for the purposes of implementing the provisions of this law - is treated as a Taxable Person independent of the persons
participating in it, and the persons participating in the Tax Group shall be jointly responsible among themselves for the Tax obligations
of the group that arise during the period of their joining it.
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Article 59
The Authority shall register any person obligated to register by applying the provisions of Articles 55 and 57 of this law in the event
that he fails to register within the time specified in the law. The Authority shall also register the Associated Persons who engage in
similar or related activities, in case the total value exceeds Their annual supplies are the Mandatory Registration Threshold, in
accordance with the conditions and controls specified by the Regulations.
Article (60)
The person who is required to register, and makes zero-rate Taxable Supplies in accordance with the provisions of this law, has the
right to submit a request to the Authority to exempt him from registration, in accordance with the conditions and procedures specified
by the Regulations.
Article 61
Any person who has a domicile in the Sultanate who makes Taxable Supplies and is not obligated to register in accordance with the
provisions of Article (55) of this law, may apply for Voluntary Registration, in any of the following two cases:
1- If the total value of the supplies made by him or the expenditures he spent at the end of any month, in addition to the eleven
months immediately preceding it, exceeds the Voluntary Registration Threshold.
2- If the total value of the supplies that he is expected to achieve or the expenditures that he is expected to spend at the end of any
month in addition to the eleven months following it, exceeds the Voluntary Registration Threshold.
The determination and amendment of the Voluntary Registration Threshold shall be by a decision of the Chairman after approval of
the Council of Ministers.
Article 62
The registration application is submitted to the Authority, according to the form prepared for this purpose. The Authority shall prepare
a record in which the registration requests and its data are entered after reviewing and verifying their validity, and the Taxable Person
receives a certificate of registration, in the manner specified by the Regulations.
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Article 63
The Authority has the right to reject the registration application submitted to it in the absence of the registration conditions, provided
that it is obligated to notify the Taxable Person of the decision to reject his registration, and the reasons for it.
Article (64)
The Taxable Person shall record the Tax identification number issued to him with the registration certificate on all correspondence,
invoices or documents he issues, and on the declarations and notifications required to be submitted to the Authority in accordance
with the provisions of this Law.
Article (65)
The Taxable Person shall notify the Authority in writing of any changes to the data previously submitted to the registration application,
within thirty (30) days of the occurrence of the changes, and the Authority issues the registration certificate including the new data.
Article (66)
The registrant must submit to the Authority a request to cancel his registration, in accordance with the conditions and procedures
specified by the Regulations in any of the following cases:
1- If he stops practicing the Activity.
2 - If he stops making Taxable Supplies.
3- If the value of his Supplies falls below the Voluntary Registration Threshold.
4 - Any other cases specified by the Regulations. The registrant may request the cancellation of his registration if the value of his
supplies falls below the Mandatory Registration Threshold and exceeds the Voluntary Registration Threshold, and the Authority may
reject the request to cancel the registration if the aforementioned cancellation conditions are not met, provided that he is obligated
to notify the Taxable Person of the decision to refuse to cancel his registration, and its reasons.
Chapter VIII
Invoices, records and returns
Article (67)
The Taxable Person must issue the Tax invoice when he supplies goods or services, including the presumed Supply, or when he
receives the consideration - in whole or in part - before the date of Supply.
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He may delegate someone else to issue the Tax invoice on his behalf, provided that he obtains the approval of the Authority. The
Regulations specify the conditions and rules for issuing a Tax invoice, its types, what is considered equivalent to it, its amendment,
the data it must include, and the cases excluded from issuing the Tax invoice.
Article 68
The Tax invoice is issued in Omani riyals, or in any other currency, and in the event that it is issued in a foreign currency, the Tax
value must be calculated in Omani riyals according to the average purchase and sale price of the currency declared by the Central
Bank of Oman on the Tax due date.
Article (69)
The Taxable Person shall keep regular accounting books and records in which he is first recorded in the first transactions related to
the Import or export of goods and supplies of goods and services. The Regulations shall specify the records and books that the
Taxable Person is obligated to keep, the rules and procedures related to them, the data to be recorded in them, and the documents
that must be kept. The Taxable Person may not keep any accounting records or books in a foreign currency except after obtaining
written approval from the Authority.
Article (70)
The Taxable Person must keep Tax invoices, accounting records, notebooks and customs documents related to the Import and
Export of goods, and any other documents related to the application of the provisions of this law, according to safe and guaranteed
means, for a period of (10) ten years following the end of the Tax year submitted During this period the Tax declaration extends the
period referred to in the previous paragraph to (15) fifteen years for Tax invoices, accounting records, books and customs documents
related to real estate funds.
Article 71
The first Tax Period for any Taxable Person starts from the date of registration, and each subsequent Tax Period begins on the day
following the end of the elapsed Tax Period. The Regulations define the Tax Period for which the Taxable Person is obligated to
submit the Tax return, provided that it is not less than a month.
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Article (72)
The Taxable Person must submit to the Authority a Tax return within the (30) thirty days following the end of the Tax Period, on the
form prepared for this purpose, provided that this return includes in particular the following:
1- The value of Taxable and exempt supplies.
2- The value of imported goods.
3 - The value of the Output Tax during the Tax Period for which the return is prepared, and the value of the Input Tax claimed to be
deducted.
4 - The value of the Tax due during the Tax Period for which the Return is prepared. And if the Return is not submitted on the date
stipulated in the previous paragraph, the Authority shall have the right to estimate the Tax for the Tax Period, and the Taxable Person
shall be notified of the estimate with an indication of the basis on which he relied, as indicated in the Regulations. In all cases, it is
not permissible to assess the Tax after the lapse of (5) five years from the date of the expiration of the period specified for submitting
the Tax Return for the Tax Period for which the Tax Return must be submitted, and the period extends to (10) ten years in the event
of failure to register within the dates specified in the law.
Article (73)
The Taxable Person is obligated to submit an amended Tax Return if it becomes apparent to him that the Tax Return submitted by
him has involved an error or omission, provided that the amended Return is submitted within the (30) thirty days following the date
of discovering the error or omission. In the previous paragraph, in the ruling on the original Return, it is not permissible to amend the
Tax Return after the lapse of (3) three years that begin
From the date it was introduced. In all cases, it is not permissible for the Taxable Person to amend the Tax Return if the Authority
has taken Tax examination procedures regarding it.
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Article (74)
The Authority must amend the Tax Return submitted by the Taxable Person if it becomes evident to him that it contains an error,
omission, or insufficiency, provided that the Taxable Person is notified of the amendment and the basis on which he relied, as
indicated in the Regulations. The Tax Return may not be amended after the lapse of (3) three years from the date of its submission,
and the period extends to (5) five years in cases of fraud or the use of fraudulent means.
Chapter IX
Tax control and examination
Article (75)
The Regulation specifies the rules and necessary control systems over the records, accounting books, documents, computer
systems, and other things that the Taxable Person uses in practicing the activity related to the special transactions that are subject
to Tax in accordance with the provisions of this law.
Article (76)
The Authority has the right to request the presence of the Responsible Person at the time and place specified in the notification he
gives for this purpose, for discussion with regard to taxable transactions in accordance with the provisions of this law, or with regard
to Tax eligibility.
Article (77)
The employees of the Authority who are designated by a decision issued by the competent authority in agreement with the Chairman
shall have the capacity of judicial seizure with regard to the implementation of the provisions of this law and the Regulations and
decisions implementing it.
Article 78
The Authority shall have the right to compel the Taxable Person or any person to submit any documents, data, accounting records,
books, Tax invoices or others that are under his control and related to the Tax liability of the Taxable Person.
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Article 79
The employees of the Authority who have the capacity of the judicial seizure shall have the right to enter the headquarters of the
taxable person in which the Activity takes place, and to view the records and accounting books, financial statements, documents,
data, documents and other things related to the implementation of the provisions of this law, and to obtain copies thereof. The Taxable
Person may not prevent or attempt to prevent an employee of the Authority from carrying out the tasks and powers entrusted to them
in accordance with the provisions of this law, and he may not refrain from providing any data, information, documents, or other
documents whenever the Authority requests that.
Article (80)
The Authority may take the necessary measures in the event that it is proven that any person has followed methods of fraud or the
use of fraudulent means, or that the main objective of any transaction has taken place, or any activity that has been practiced -
whether from the date of issuance of this law or from the date of its implementation - was to avoid being subjected In whole or in part
- for the Tax due for any Tax Period, as indicated in the Regulations.
Chapter X
Tax collection and refund
Article 81
Each of the following shall pay the Tax to the Authority:
1- The Taxable Person when Supplying goods or services.
2 - The Taxable Customer upon receiving goods or services supplied to him by a person who does not have a place of Residence
in the Sultanate in cases where the reverse charging mechanism is applied.
3- The importer when importing goods in accordance with the provisions of the Unified Customs Law.
4 - The person who writes the Tax amount on his invoice.
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Article 82
The Tax due on the basis of the Tax Return shall be payable to the Authority on the date specified for submitting the Tax Return.
The Tax due, based on the assessment or amendment made by the Authority, shall be payable on the date specified in the notification
sent from it, provided that it does not exceed (30) thirty days from the date of the notification.
In the event that the Tax is not paid on the specified date, the Additional Tax shall be due, and the Chairman may exempt from the
entire value of the Additional Tax or part thereof, in accordance with the rules specified by the Regulations.
Article (83)
It is not permissible for the Taxable Person to agree to transfer the burden of Tax to others, and any agreement to this effect shall
be null.
Article 84
The General Directorate of Customs shall collect the Tax on imported goods by applying the prescribed rate and the Taxable Value,
and depositing them in a special account opened for this purpose in accordance with the rules specified by the Regulations. Every
importer - in the event of paying the tax due on imported goods at the First Port of Entry in any of the GCC states - is obligated to
submit to the General Directorate of Customs the documents proving the payment of the Tax at the first entry point, otherwise the
Tax is due on him.
Article (85)
The importer shall, in the event of suspending payment of the Tax in accordance with the provisions of Article (50) of this Law,
To submit to the General Directorate of Customs the guarantee specified by the Regulations, equivalent to the value of the Tax due,
provided that this guarantee is valid throughout the period during which the Tax payment is suspended.
Article (86)
The taxable person may request that payment of the tax due upon import be postponed until he submits the tax return for the tax
period during which the import took place, in accordance with the conditions, and following the procedures specified by the
regulations.
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Article (87)
The Tax is refunded according to the terms and conditions specified by the Regulations, in the following cases:
1 - The Tax paid by the Taxable Person in excess of the Tax due.
2 - Tax paid by foreign governments, diplomatic and consular agencies and missions, military and international organizations, and
heads and members of the two missions: the diplomatic and consular accredited to the Sultanate, on the condition of reciprocity.
3 - The Tax paid by any person who has no Residence in the Sultanate, or in any of the GCC countries, and is not subject to Tax.
4 - The Tax paid by any person who has a Residence in any of the GCC states, is Taxable there, has no Residence in the Sultanate,
and is not subject to Tax there.
5 - The Tax paid by tourists visiting the Sultanate on goods purchased from it, which they carry with them in their personal luggage
when they leave outside the GCC.
6- Any other cases specified by a decision of the Chairman.
Chapter XI
Tax dispute
Article (88)
The Taxable Person shall have the right to object to the Chairman about assessing the Tax or amending the Tax Return by the
Authority, or from the registration decision, rejecting it, or canceling it, within (45) forty-five days from the date of its announcement
of the estimate, amendment, or decision, the assessment of the Tax or the amendment of the Tax Return by the Authority, or the
registration decision, its rejection, or its final cancellation if the objection is not submitted within the aforementioned period. Submitting
the objection does not prevent collection of Tax, unless the delay is decided according to Article (90) of this law.
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Article (89)
The Authority undertakes to reconsider the Tax assessment, amend the Tax Return, or the registration decision, reject it, or cancel
it if the objection is acceptable, within (5) five months at most from the date of submitting the objection, and it may be extended for
another period not exceeding (3) Three months, provided that the objector is notified. The Chairman issues his decision on the
objection within the limits of the objector’s requests, by confirming the assessment, modification, reduction, approval or revocation
of the decision, and the Tax is collected according to the Chairman’s decision if it has not been collected. Objection without a decision
is tantamount to a rejection decision.
Article (90)
The objector may request to postpone the payment of the objected Tax - in whole or in part -, provided that the request is submitted
to the Chairman including its reasons, and the amount of Tax required to be postponed, within the thirty (30) days from the date of
submitting the objection, as indicated in the Regulations. To accept the request to postpone payment of part of the Tax, the objector
must pay the remainder of the Tax value that was not included in the application.
Article 91
The Taxable Person shall have the right to appeal against the Chairman’s decision issued in the dismissal of the objection before
the Committee within (45) forty-five days from the date of his notification of the Chairman’s decision, as indicated in the regulations.
The Chairman’s decision is considered final if the grievance is not submitted within the aforementioned time. Filing a grievance is
prohibited regarding collecting the Tax.
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Article 92
The Committee shall be formed by a decision of the Chairman - after the approval of the Council of Ministers – consisting of a
Chairman, a Vice-Chairman, and (3) three members who are not employees of the Authority. The meeting of the Committee shall
not be valid except in the presence of its Chairman, or his deputy in the event of his absence, or the presence of an objection to him,
by at least two (2) of its members, and the Committee shall have a secretary and one or more technical experts, and the decision
issued for them is determined by the Chairman. The members of the Committee shall have the right to charge a sitting allowance
according to the rules specified by the Chairman.
Article 93
The Committee is competent to decide on the grievances submitted by the Taxable Person against the decision of the Chairman
competent to adjudicate the objection, and to determine the rules governing the work of the Committee, the records to be kept, the
procedures for holding its sessions, the provisions and dates for submitting the grievance, the procedures for its consideration, and
the methods and means of announcing the decisions issued by it regarding decision of the Chairman. In all cases, the Committee
must observe general principles of litigation procedures, including the principles of confrontation, the right to defense, reasoning of
decisions, commitment to the methods of notification, and the legally specified dates.
Article (94)
The Committee issues its decision on the grievance within the limits of the complainant’s requests, by confirming the Chairman’s
decision, amending it, or canceling it. Tax is collected according to the Committee’s decision if it has not been collected. The sessions
of the Committee are secret, and its decisions are issued with the majority of the votes of the attending members, and in the event
of equal votes, the side of the meeting chair shall prevail, and the decision shall be signed by the chairperson and the secretary
within (7) seven days at most from the date of its issuance and notified in secrecy to the complainant and the Chairman within (7)
seven days at most from the date of its signature.
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Article (95)
The Authority may - within (60) sixty days from the date of its announcement of the Committee’s decision - request that the decision
be corrected or amended if it involves a mistake in applying the law, unless it is challenged before the judiciary, and in all cases the
Taxable Person must be notified of the Authority’s request, and the Committee’s decision issued.
Article (96)
The Taxable Person may appeal the Committee’s decisions before the competent court of first instance made up of three (3) judges,
within (45) forty-five days from the date of announcing the decision, and appealing against the Committee’s decision does not prevent
Tax collection.
Article (97)
The court referred to in Article (96) of this law may consider the Tax case in a confidential session, provided that the court decides
on the Tax case as a matter of urgency.
Article 98
The Authority shall be exempted from fees prescribed for lawsuits and Tax appeals.
Chapter XII
Penalties
Article 99
Without prejudice to any stricter penalty stipulated in any other law, the crimes stipulated in this law shall be punished with the
penalties prescribed therein.
Article (100)
An offense shall be punished by imprisonment for a period not less than two (2) months and not exceeding (1) year, and a fine no
less than (1,000) one thousand Rial Omani and not exceeding (10,000) ten thousand Rial Omani, or one of these two punishments,
in the following cases:
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1 - The Taxable Person intentionally refrained from identifying the Responsible Person.
2 - The Responsible Person deliberately refrained from notifying the Authority, and obtaining consent to appoint another Responsible
Person during his absence for a period of more than (90) ninety days.
3 - The Taxable Person's intentionally refraining from notifying the Authority of any amendments to the data in accordance with what
is stipulated in Article (65) of the law.
4 - The Responsible Person deliberately refraining from attending at the request of the Authority.
5- The Responsible Person deliberately refraining from submitting the Tax declaration for any Tax Period.
6 - The Taxable Person intentionally refraining from keeping regular accounting records and books in accordance with the provisions
of this law.
7 - Deliberately refraining from keeping Tax invoices and documents for the period specified in accordance with the provisions of this
law.
8 - Deliberately refraining from issuing a Tax invoice that must be issued in accordance with the provisions of this law.
9 - Issuing an invoice intentionally recording the amount of Tax other than the Tax imposed in accordance with the provisions of this
law.
10 - Carrying out any act, action, procedure or omission that would obstruct the employees of the Authority, or those who are assisted
by them from carrying out the functions and tasks assigned to them under this law.
11 - The Taxable Person or any person intentionally refraining from submitting any documents, data, records, accounting books, Tax
invoices, or others, in accordance with what is stipulated in Article 78 of this Law.
12 - Intentionally including incorrect data or information in the refund request. In the event of recurrence, the court may double the
fine, and increase the legally prescribed maximum penalty for imprisonment, not exceeding half of this limit.
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Article 101
Each person shall be punished by imprisonment for a period not less than (1) a year and not exceeding (3) three years, and a fine
not less than (5.000) five thousand Omani Rials and not exceeding (20,000) twenty thousand Omani Rials, or one of these two
punishments. Commit one of the following acts:
1 - Deliberately refraining from registering with the Authority.
2 - Deliberately refraining from including the Tax Return real data with the Taxable Value, and the Tax due on it.
3- Submitting forged Tax Returns or documents or records to evade paying Tax in whole or in part.
4 - Intentionally destroying, concealing, or disposing of any documents, records, accounts, lists or others that the Authority requires
to submit in the application of the provisions of this Law, if the destruction, concealment, or disposal is done within (1) year from the
date of receiving the notification from the Authority.
5 - Intentionally inciting or assisting the Taxable Person to submit declarations, records, or other incorrect documents related to the
Tax liability of the Taxable Person. The court may decide to confiscate the means, devices, and tools used in committing the crimes
set forth in this article. In the event of recurrence, the court may double the fine and increase the legally prescribed maximum penalty
for imprisonment by a maximum of half of this limit.
Article 102
It is not permissible to file a public lawsuit, or take any measures in the crimes stipulated in this law, except upon a request from the
Chairman. The Chairman may reconcile in the aforementioned crimes, prior to the issuance of a final judgment in the case, provided
that an amount is paid not less than twice the minimum, and not more than twice the maximum fine determined for the crime. As a
result of the reconciliation, the public lawsuit shall be terminated, and the effects resulting from its prosecution, including the adjudged
penalty, are canceled.
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Article (103)
The regulations specify the administrative penalties that may be imposed on the violator, including the procedures for grievance, and
the amount of the administrative fine that may be imposed.
Chapter 13
Final provisions
Article 104
If an invoice or payment for the Supply of goods or services is issued prior to the effective date of this law, or before the date of
registration, and the Supply takes place after either of these two dates, the Supplier of the goods or services shall be deemed to
have made a Taxable Supply after the effective date of this law, or after the date of registration. in the following two cases:
1 - If the date of delivery of goods was later than the date on which this law came into force, or after the date of registration.
2 - If the date of completing the performance of service is later than the date on which this law came into effect, or after the date of
registration.
Article (105)
Tax is due in respect of successive supplies related to contracts that were concluded before the date on which this law came into
force, or before the date of registration, or the Supply that took place - in whole or in part - after the date on which this law came into
force, or after the date of registration, as the case may be. And if the contract does not include a provision related to the Tax, the
consideration shall be considered including the Tax if it is due in accordance with the provisions of this law, as specified by the
Regulations.
Article 106
A person who has a place of Residence in the Sultanate and exercises activity in it prior to the date this law comes into force, must
do the following:
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1- Calculating the total value of his supplies referred to in Article 56 of this law, which he achieved at the end of the month in which
the law was published in the Official Gazette, in addition to the eleven months immediately preceding it.
2 - Estimating the total value of his supplies referred to in Article 56 of this law, which he is expected to achieve at the end of the
month in which the law was published in the Official Gazette, in addition to the eleven months immediately following it.
3 - Submit a registration application to the Authority, if the value of any of the supplies referred to in Clause (1) or Clause (2) of this
Article exceeds the Mandatory Registration Threshold, during the dates specified by a decision of the Chairman.
The passing of the registration dates referred to in the previous paragraph without submitting the registration application, the person
who proves that the value of his supplies realized or expected during the period referred to in clauses (1) and (2) of this article
exceeds the mandatory registration limit shall be considered registered for purposes Tax.
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Oman VAT Decree Law Unofficial Translation by Brooks FinTech Accountancy-19 Oct 2020

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Brooks FinTech Accountancy Unofficial Translation of Decree Law no.

www.brooksgulf.com 121/2020 of the Sultanate of Oman

Unofficial Translation by Brooks Gulf LLC

Value Added Tax Law

3- With regard to the Fixed Establishment:

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