Skip links

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

Comments (click for details) Rate Date Threshold Comments
Algeria 9% Jan 2020 Nil
Angola 14% Oct 2019
Bahrain 10% Jan 2019 Nil
Cameroon 19.5% Jan 2020 XAF 50 million
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% 2022 Proposal in 2021/22 budget
Ivory Coast 18% 2022 -
Kenya 16% Sep 2013 -
Kuwait 5% Jan 2023? - TBC
Mauritius 15% 2020
Nigeria 7.5% Jan 2020 $25,000
Oman 5% Apr 2021 OMR 35,000
Rwanda 18% TBC
Saudi Arabia 15% Jan 2018 Nil
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2015 TZS 40 million Only resident
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 Nil
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil

Leave a comment