Oman VAT

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Frequently asked questions about Oman VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Oman. VAT is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

Where a foreign organization (such as Zoom) provides online digital services to customers in Oman, there is a requirement to collect and remit VAT on the supplies to the Oman Tax Authority where the online digital services are deemed to be “used and enjoyed '' in Oman. The party which has the responsibility to collect and remit the VAT due depends on whether the Omani customer is registered for VAT in Oman.

If you are a business customer registered for VAT in Oman, you should provide Zoom with your Omani VAT Number. If your VAT Number is valid, then no VAT will be charged on the supplies made to you by Zoom; however, you will be required to self-assess for the VAT due under the “reverse charge” mechanism. Zoom has no VAT liability for transactions made to VAT registered customers in Oman as the responsibility to account for the VAT due lies with the business customer under the reverse charge mechanism.

If you are not a business customer or if you are a business but do not provide a valid Omani VAT Number to Zoom, Omani VAT will be charged on the supplies made to you.

Why am I being charged VAT?

Zoom is registered for VAT in Oman as a non-resident supplier of digital services. As such, Zoom is required to collect and remit VAT on supplies made to non-VAT registered customers in Oman.

What is a VAT Number?

A VAT Number is a tax number issued to persons in Oman by the tax authorities. It consists of an ‘OM’ prefix, followed by 10 digits.

How do I enter my VAT Number?

To provide your VAT Number, please complete the following steps:

  1. Sign in to the Zoom web portal.
  2. In the navigation menu, click Account Management then Billing.
  3. Click the Billing Information tab.
  4. Under Sold To Contact, click Edit to edit the VAT Number (which appears after the Sold To Contact address fields).
  5. Enter your VAT Number.
  6. Click Save Changes.

Note: You are required to notify us if there is a change to your VAT Number.

Does Zoom have a VAT Number?

Yes. Zoom’s VAT Number will be shown on the invoice it issues to you.

How is Zoom determining which customers VAT applies to?

If a customer's ‘Sold To’ location is in Oman and the customer has not provided a valid VAT Number for Omani tax purposes, Zoom will charge Oman VAT on its invoices.

Is there a minimum threshold purchase amount before VAT is applied?

No. Where a customer in Oman has not provided a valid Omani VAT Number, Zoom will charge VAT on all supplies made to you.

Are there any VAT obligations for me as a customer?

If you have provided a valid Omani VAT Number to Zoom, no VAT will be charged on the supplies made to you. However, you will be required to report the purchase and self-assess for the VAT under the “reverse charge” mechanism. Zoom has no VAT liability for transactions made to VAT registered customers in Oman as the responsibility to account for the VAT due lies with the business customer.

What if I have a VAT Number and forget to enter it?

Your Omani VAT Number may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no VAT Number for Omani tax purposes is entered at the time the next invoice is issued, VAT will be charged until a valid VAT Number for Oman tax purposes is provided. No retrospective adjustments will be made where you fail to provide a valid VAT number to Zoom before the issuance of an invoice.

Decision tree – My “Sold To” address is Oman; will I be charged VAT?

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Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Oman. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.

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