Oman VAT

Place of supply of items under
By definition, the place of supply is the place where the supply is deemed to have been made. Businesses must use the term “place of supply” to determine whether a shipment is subject to sales tax. Additionally, the concept can also help companies assess the applicability of taxes on cross-border transactions that affect their supplies within the GCC. 

The Oman VAT Law and VAT Regulations set out rules for determining the place of delivery for different types of goods. For the delivery of goods and services, different regulations apply to determining the location of delivery. This blog describes the rules for determining where to pick up your items.

Place of Delivery of Goods
Due to the different nature and nature of the actual delivery of goods, the Oman VAT Law and the VAT Regulations provide different rules for determining the place of delivery. Let’s go over each of these situations in more depth.

Place of Delivery for Domestic Delivery of Goods with Transportation or Delivery
The place where the goods are delivered to the recipient in Oman. This includes shipping or transporting goods from suppliers to customers.

Example

Noor Electronics in Muscat receives 100 monitors from registered dealer Ali & Co. in Muscat. Ali & Co. consented to deliver the items to Noor Electronics’ location.

The recipient is in Oman, so the delivery location will be in Oman. Delivery is therefore subject to 5% VAT.

A shipping point for shipping goods domestically without transportation or delivery.
This shipping method involves shipping the item to the recipient at the factory. Refers to all cases in which a customer collects goods from a supplier themselves.

Examples.

Abdul & Co, a registered dealer in Muscat, is supplying his 10 mobile phones to Max Electronics in Kenya. Max Electronics plans to recover the mobile phone from Abdul’s premises.

Delivery takes place at the supplier’s factory location, so Oman is considered the delivery location. Delivery is therefore subject to 5% VAT.

Place of delivery when importing goods
The site of delivery is Oman if products are imported into Oman from anywhere outside of Oman. Therefore, upon delivery he will be subject to VAT.

Example: Jehan & Co., a registered dealer in Muscat, purchased his 50 mobile phones from an Indian company, A-One Pvt Ltd.

Jehan & Co. here imports goods from India to Oman. The delivery location is Oman and the delivery will be subject to VAT. Jehan & Co. must pay his VAT at a rate of 5% using the reverse charge method, either at the port or when he submits his VAT return if the company chooses a deferred payment arrangement. yeah.

Supply of gas, oil, water, electricity (by wire or pipeline)
Supplier

Consignee

Place of supply

Taxable person residing in the GCC countries

Taxation residing in the Sultanate Dealer

Taxable Person

Taxpayer

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