Display tax registration certificate in a prominent place in your company, says Tax Authority

Muscat: Tax registration certificate should be placed in the institution in a prominent place before paying the Value Added Tax (VAT), a top official from the Tax Authority said. 

Speaking exclusively to Times of Oman, the official said: “What is being circulated about the application of the value-added tax is limited only to commercial and industrial activities with an income of more than ( OMR 1,000,000 )  annually, is totally untrue, but rather imposes the application of the tax on all activities that display goods subject to value added tax regardless of its monthly income.”

He confirmed:"No institution, even if registered with the tax authority, has the right to impose value-added tax before the effective date of the registration shown in its tax certificate."

"It is meant by the effective date of the registration, that is, the date on which the institution registered for the tax authority becomes obligated to start applying the value-added tax, and it is not entitled to start applying the tax before that,” he explained. 

He confirmed also: "The merchant or supplier has no right to impose value-added tax without presenting the tax certificate in a suitable place that all consumers can view, such as the license certificate of the commercial store."

According to Decision No. 3/2021 specifying the dates and date of registration for the value-added tax, based on the Value Added Tax Law issued by Royal Decree No. 121/2020, and Resolution No. 1/2021 determining the mandatory and optional registration threshold, the first article decides in implementation of the provisions of the aforementioned Value Added Tax Law, those subject to tax must register with the Tax Authority according to the following:

First Category: If the annual value of supplies exceeds or is expected to exceed ( OMR 1,000,000 ) and the registration date is from February 1, 2021 to March 15, 2021, and the implementation of value-added tax will start on April 16, 2021.

The second category: If the annual value of supplies ranged between ( OMR 500,000 ) to ( OMR 1,000,000 ) and the registration date is from April 1, 2021 to May 31, 2021, and the implementation of the value-added tax will start on July 1, 2021.

Third Category: If the annual value of supplies ranged between ( OMR 250,000 ) to ( OMR 499,999 ) OMR, and the date of registration shall be from July 1, 2021 to August 31, 2021, and the implementation of the value-added tax shall start on October 1, 2021.

Fourth Category :If the value of annual supplies ranged between ( OMR 38,500 ) to ( OMR 249,999 ), and the date for registration shall be from December 1, 2021 to February 28, 2022, and the implementation of value-added tax will start on April 1, 2022.