Value Added Tax (VAT)
Introduction of VAT in Sultanate of Oman
As you may already be aware, The Sultanate of Oman has issued Royal Decree 121/2020 pertaining to the implementation of Value Added Tax (VAT). The VAT law promulgates that a 5% tax will be levied on taxable goods and services effective from Friday the 16th of April 2021.
VAT will also be applicable on fees and commissions when availing Banking products and services. Exemptions of VAT are on Loans, deposits, interest and profit.
BankDhofar and its Islamic Banking window, Maisarah Islamic Banking Services is registered for VAT with the Oman Tax Authority and our VAT number is (VATIN) OM1100005224.
During the transitional phase, any advance fees/commission/charges paid by the customer prior to VAT implementation will be pro-rated. For example, if customer paid in advance any fee/commission or charges prior to 16th of April 2021, VAT will be levied only for the period post VAT implementation.
Customers registered for VAT are required to provide their VAT Registration (VATIN) details along with the VAT Registration Certificate to their Relationship Manager. Customers can also submit their VAT Registration to the nearest branch and inform their Relationship manager regarding their submission. BankDhofar will issue a Tax Invoice for each month displaying the requisite details to be compliant with the VAT Law and enable customers to claim input tax credit, where applicable.
Tax Invoice will be sent to customers via email alternatively the customer can visit their nearest branch to collect their invoice.
Customers are requested to update their current address and Email address with the Bank to ensure delivery of Tax Invoice and claim tax credit for the VAT paid to the bank.
Please visit Tax Authority website at https://tms.taxoman.gov.om for more details on VAT.
Thanks for your Support
VAT means Value Added Tax. It is a Tax on goods and services.
Value Added Tax (VAT) is charged at 5%, on the value of goods and services that are bought and sold in the Sultanate, including goods and services imported into the Sultanate.
The revenues of the value-added tax (VAT) will contribute in supporting the expenditures of social and development activities, thus strengthening the national economy.
Yes. VAT is applicable to individuals and corporates
Yes, Islamic banking services and commercial banking services will be subject to VAT
VAT is applied on Fees and Commission charged by the Bank
Loans, Deposits, Interest, Profit are exempt from VAT
Any business engaged in supply of goods or services exceeding the turnover specified by the Tax Authority
If a Business wants take credit of the VAT paid, it requires VAT Registration number in the Tax Invoice provided by the Bank and claim tax credit when submitting the VAT returns to Tax Authority
VAT Registration Number can be obtained from Tax Authority provided they exceed the turnover threshold given by Tax Authority
Visit the bank, fill up the VAT Registration Form and submit along with the relevant documents
VAT at 5% is added to all fees and commission charged by the Bank
Bank statement show charges inclusive of VAT. At the end of each month, tax invoice will be sent to the email address of the customer registered with the Bank. Alternatively, Customers can visit their branch and request for printed invoice. The customers can also call the Call Center and get the invoice by email
Charges paid in advance before VAT (before 16-Apr-2021) like credit card fees, safe deposit locker fees will be charged VAT on a proportionate basis for the period it covers after introduction of VAT
Tax Invoice provided by the Bank at the end of each month will contain the details of VAT
VAT will be reversed to the extent of refund. If the entire charge is reversed, VAT will be reversed fully
Yes, VAT is charged on the penal interest charged to the customer for default in payment
Yes. VAT is charged on the penal interest charged to the customer for default in payment
VAT will be charged on the fees charged by the bank for the takeover of loans. Loans and interest are exempt from VAT
Bank will provide Tax Invoice to the customer after 10th of the subsequent month. It will be emailed to the customer’s registered email address with the bank
Visit the branch to get a printed copy of the Tax Invoice for the previous month(s)
No. There are no charges for getting Tax Invoice for the previous month.
Provide your updated details to the branch and request for corrected invoice.
Provide details of your VAT Registration to the Bank by filling up the Customer VAT Registration Form and submit it to the branch