VAT implementation from 16 April 2021

As mandated by Oman Government through Royal Decree No. 121/2020, with effect from 16 April 2021, Value added tax (VAT) of 5% will be applicable on most of our products and services. VAT is introduced as part of the national strategy towards building a diversified and robust economy.

FAQs

Q – What is VAT?
A – VAT is an indirect tax that has been introduced by the Oman Government and is payable by both business and individuals.

Q – When will VAT come into effect?
A – Starting from 16 April 2021, VAT is effective at a standard rate of 5% on most goods and services including automotive products and services.

Q – How does VAT apply to Towell Auto Centre represented products and services?
A – VAT applies to taxable products and services at a rate of 5%.

Q – Is VAT applicable on all the products and services provided by Towell Auto Centre?
A – VAT is applicable on all of the products and services offered by TAC except the donation to charitable organizations.

Q – I am a business owner. I have registered with the Oman Tax authority and have received my certificate and VAT registration no. Do I need to share this with Towell Auto Centre?
A – Yes, once you receive your Tax registration no (VAT IN No) you are required to send it to us. This is important for us to update your account details and ensure that your VAT IN no is reflected in your monthly invoice. Currently this VAT registration no can be shared with your dedicated Sales contact or the Finance Manager. As a customer, you need to provide your VAT registration certificate along with your commercial registration certificate to our representative for proper updating of details in the system.

Q – Does VAT apply to contracts that started before 16 April 2021 and are still active?
A – Yes, VAT applies to existing monthly contracts continuing into 16 April 2021, even if they were signed before 16 April 2021

Q – How is VAT applied on my bill/ invoice?
A – A separate VAT section will show the amount that is being charged towards VAT in all Bills and Invoices

Q – What is TAC’s VAT registration number?
A – Towell Auto Centre VAT registration number is OM1100009778, the official registration certificate is available.

Additional information on VAT in Oman – The Oman Value Added Tax (VAT) Law | Deloitte Oman | Tax Services