From April, 16 2021 three Executive Decisions under VAT will come into force.These decisions were published by the Chairman of Tax Authority (TA).
After implementing the provisions of VAT law promulgated by Royal Decree no.121/2020 these decisions will be in force serially.
- First decision :Determination of mandatory registration threshold and voluntary registration threshold.
Determination and adjustments of mandatory registration under Article (55) of VAT law can only be issued by TA’s Chairman after the approval from the Council of Ministers.According to this decision ,registration Charges are (38,500) Thirty Eight Thousands and Five Hundred Omani Rials thus taxpayer will be obliged to register at the TA if his/her annual supplies stand at 38,500 or more or are expected to reach this range.If the taxpayer may apply for optional registration in case the applicant’s annual supply stand at, or cross or expected to go beyond the value then he/she have to pay 19,250 Nineteen Thousands and Two Hundred Fifty Omani Rials.The GCC Unified VAT agreement specifies the mandatory registration threshold and voluntary registration threshold.
- Second decision :Determination of deadlines to register
Based on the volume of their annual supplies a certain level of advancement is made in taxpayer’s registration to the TA aiming to grant SME sufficient time to prepare & adjust their systems and their mechanisms of filling and billing in order to meet the requirements of the VAT law. The deadline( the date on which the taxpayer will be required to implement the VAT law’s provisions including imposing VAT on his supplies ) will also be mentioned.If the taxpayers value of annual supplies cross or is expected to cross (1000, 000) One Million Omani Rial then they have to register to the TA during the period from Feb, 1 2021 to March, 15 2021.The date of entry into force & the date of applying the tax will be same ,i.e,April, 16 2021.If the taxpayers value of annual supplies cross or is expected to cross (500,000) shall begin next April then their date of enforcement for this category maybe July, 1 2021.If the taxpayers value of annual supplies or expenses cross or is expected to cross (19,250) which being set to guarantee zero effect on small and medium business sectors are willing to register in VAT’s system and benefit from features such as tax refund which incurred on its savings then they have to register from Feb, 1 2021.For those who claimed for registration during the first phase, the guidance is published in the tax Authority portal along with guidance for preparing VAT.
- Third decision :Lists foodstuff exempted from the VAT (zero VAT payment).
- Dairy products
- Fresh Eggs
- Fish, poultry and meats
- Grains
- Olive oil
- Vegetables and fruits
- Food salt
- Sugar
- Child foods
- Bread
- Coffee, tea and cardamom
- Bottled water
