What is VAT and from when is it implemented?

The Value Added Tax (VAT) is an indirect tax levied on the consumption of goods and services. The Sultanate of Oman has implemented VAT from 16 April 2021. Please note: VAT is applicable only to National (Omani) Companies on JSRS

          Where can I get more information on VAT?

Kindly visit the Oman Tax Authority website for more information: https://tms.taxoman.gov.om/portal/web/taxportal/home

          Do I need JSRS Certification for VAT Registration?

As per the Section 2.3 : ‘Clarifications on Article 93’ on VAT Taxpayer Guide

Oil & Gas Version 1 -Issued during January 2022 by Tax Authorities of Oman, for the application of the zero-rate to the upstream and midstream sector TA accepts Joint Suppliers Registration System (JSRS) to meet the “MEM licensing” requirement specified under Article 93 (3) only of ER. Contractors providing products/service to upstream/midstream shall submit their JSRS certification copy as proof of “MEM certification” for VAT registration.

            Is Business Gateways International VAT registered?

Yes, Business Gateways International is VAT registered with effect from 16 April 2021. Our VAT registration number is OM1100015174.

           VAT impact National & International companies who are registering on JSRS?

National (Omani) Companies registering for the first time or renewing their subscriptions will be charged 5% as VAT on the invoiced amount. VAT will not be applicable on International registrations. VAT is applicable ONLY to National (Omani) Companies and not to the International Suppliers

          How does VAT affect Omani companies on JSRS?
      

• As per Oman Government Guidelines, payments made from 16 April 2021 by National (Omani) Companies for any services on JSRS, will be subject to VAT of 5%.
• All unpaid Invoices from JSRS/BGI dated earlier than 16 April 2021 will not be valid for payment post 16 April 2021.
• Kindly login to generate new invoice to make payment from 16 April 2021 onwards.
• National (Omani) Suppliers who have already paid before 16 April 2021 will not be affected by this.

          How will this affect the JSRS Buyers Community?

All Operators/Buyers/Contractors/Service Providers engaged in upstream and midstream businesses are advised to complete their VAT IN before 16 April 2021 and submit their JSRS Registration Certificates to the Tax Authority as part of their VAT registration. Read letter from Ministry.

          What other services in JSRS are applicable for VAT?