According to Oman VAT, imports of goods and services into the Sultanate are subject to 5% VAT. Excludes some types of shipping such as: B. All goods or services imported into the Sultanate of Oman are subject to tax, with few exempt, non-taxable, and reported supplies. Importers are responsible for paying VAT when importing goods and services. The procedure for paying VAT is different for importing goods and importing services.
Understand your options or steps for paying VAT on imports of goods and services in our blog. Let’s start with importing products.
Payment of her VAT on import of goods
An importer has two options for paying her VAT on import of goods. The first option is to pay on the day the goods are imported or at the first point of entry on the day the goods are imported. The second option is deferred payment of VAT.
When goods are imported
According to the law, the importer is obliged to pay her VAT on the day of importation of the goods or at the time of the goods’ first entry into the country. For convenience, importers are required to pay VAT on the day the goods enter the Sultanate.
For example, if you import goods directly from Malaysia, the payment of taxes will occur once the goods enter Oman and you will have to pay her VAT to the customs office along with other duties before the goods can be cleared.
Deferment or postponement of VAT on imported goods
Unlike the first option, where he has to pay the VAT at customs, the deferment or postponement option allows you to pay the VAT on the importation of goods at a later date. H. Postponement of refund upon refund of VAT. Those wishing to avail this option must submit an application to the authorities in the prescribed form. The authorities will examine the application and grant permission to defer the payment of her VAT on the importation of the goods.
For example, if you import goods directly from India, he does not have to pay the VAT at the customs office and he can pay the VAT on the date of submission of the VAT return.
To obtain permission to defer the payment of VAT when importing goods, a business must submit the necessary information and documents and meet the conditions set out in the VAT Regulations. Deferring VAT payments is a major benefit for companies that import frequently.
His VAT payments on imports of services
When importing services from outside the GCC countries, a business must treat these supplies as if they were manufactured by itself. Simply put, when importing services, you are required to pay VAT under the Reverse Charge Mechanism (RCM).
In a reverse charge system, the recipient or purchaser of goods or services is responsible for paying the tax to the authorities, unlike the forward charge system where the supplier is liable to pay the tax. The most important change is that the responsibility for paying taxes shifts from the supplier to the purchaser.
For example, if you receive technical services from a service provider based in India, you do not have to pay her VAT to the service provider. Instead, you must pay the VAT directly to the authorities. Normally, her VAT on the import of services is paid at the time of submission of the VAT return.
You can also Register for VAT Registration on our website: