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June 26, 2026

Reverse Charge Mechanism

VAT Taxpayer Guide

Version 1 | June 2023

Contents

1. Introduction

  1. 1.1 About This Guide

  2. 1.2 Who Should Use This Guide?

  3. 1.3 Definitions

2. Registering for VAT

  1. 2.1 Determining the Value of Taxable Supplies Under the Reverse Charge Mechanism for the Purpose of Registering for VAT

3. What Is the Reverse Charge Mechanism

4. When Reverse Charge Mechanism Is Applicable – RCM Cases

  1. 4.1 Scope of Reverse Charge Mechanism Application

  2. 4.2 Import of Taxable Services by a VAT-Registered Person

  3. 4.3 Receipt of Services from a Non-Resident Supplier

5. Tax Due Date

6. Reporting & Payment of Tax Calculated Under Reverse Charge Mechanism

  1. 6.1 Output Tax

  2. 6.2 Input Tax Deduction

Introduction

About This Guide

The purpose of this guide is to provide guidance regarding the application of the Reverse Charge Mechanism principles in Oman, including clarifications regarding the VAT treatment of the supply of services received from overseas suppliers and the VAT obligations which may arise.

The guide reflects the TA's interpretation on the application and treatment of VAT with respect to the VAT Law and the Executive Regulations at the date of issuance of this guide. This is strictly a guideline and may not include some relevant legislative provisions from the VAT legislation. This guide is not binding on the TA, or on any taxpayer in respect of any transaction carried out, and it cannot be relied upon in case of dispute.

For further guidance on specific transactions, you may apply for a ruling, or visit the TA's website at www.taxoman.gov.om

Who Should Use This Guide?

You should read this guide if you receive services from non-resident suppliers for use within your activity.

Definitions

The following defined terms are dealt with in this guide: