Oman VAT on non-resident digital service providers

Oman implemented its 5% Value Added Tax regime on 16 April 2021, including making electronic or digital services providers and electronic marketplaces liable to tax on B2C supplies. There is no VAT registration threshold from non-resident traders

Oman is the fourth of the six Gulf Cooperation Council (GCC) countries to introduce VAT as a part of a regional VAT and customs union. Saudi Arabia, the UAE and Bahrain proceeded with VAT on foreign e-services providers, too. Qatar and Kuwait have not made the plans on implementing VAT yet. Check our global VAT and GST on digital services tracker to which other countries around the world have followed the global trend.

Oman VAT registrations and returns for e-services

There is no VAT registration threshold for non-residents providing digital services. Otherwise, it is OMR 38,500. Eligible providers must register with the Oman Tax Authority if they have passed this annual threshold or expect to within in the next twelve months.  There is no obligation to appoint a Fiscal Representative, but providers may do so. The Representative must have been approved by the OTA, and is directly liable for their client’s VAT.

VAT returns are then due on a quarterly basis with the OTA. They must be filed by the end of the month following the reporting period.

What digital services are taxable in Oman?

Income from the following services is subject to VAT:

• Apps
• SaaS or cloud-based software
• Streaming or download software
• Online storage
• Advertising

Compiling VAT or GST return can be complex. VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditor integrated tools.

Africa & Middle East VAT on digital services