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11.2. VAT on the Supply of Services by Non-Residents

The supply of services by non-residents carrying on economic activities from or through a permanent establishment in Oman is subject to VAT in Oman. Non-residents not carrying on economic activities from a permanent establishment in Oman may appoint a tax representative to comply with their VAT obligations.

The supply of services by a non-resident without a permanent establishment to any VAT-registered payer (B2B) in Oman is subject to a reverse charge VAT in the hands of the service recipient. This includes supplies from non-residents that are resident in the GCC Member States.

Digital Supplies

A non-resident without a permanent establishment in Oman providing electronic services to a non-VAT-registered customer in Oman (B2C) is required to register for VAT. In case of supply of electronic services to VAT-registered customers (B2B), the VAT is payable by the customer on a reverse charge basis. In case of services provided electronically, the place of supply is considered the place of actual use or benefit of the services.

Electronic services mean the services supplied directly through the internet or an electronic network, where the supply of the services is principally automatic, requires minimum human interference and can be supplied only with the use of information technology, and includes:

  • Supply of digitized products, including software and changing or upgrading a software;
  • Providing or supporting a business or personal presence on an electronic network such as a website or a webpage;
  • Services automatically generated from a computer via the internet or an electronic network, in response to specific data input by the recipient;
  • Transfer of the right to put goods or services up for sale on an internet site operating as an online market on which potential buyers make their bids by an automated procedure for a consideration and on which the parties are notified of a sale by electronic mail automatically generated from a computer;
  • Internet Service Packages (ISP) of information in which the telecommunication component forms an ancillary and subordinate part (i.e. packages going beyond mere internet access and including other elements such as content pages giving access to news, weather or travel reports, playgrounds, website hosting and access to online debates);
  • Website hosting and webpage hosting;
  • Providing digitized content of books and other electronic publications;
  • Providing access and subscriptions to online newspapers and journals, online news, traffic information and weather reports;
  • Accessing or downloading music, jingles, excerpts, ringtones, or other sounds;
  • Accessing or downloading films, video, games, including online games that are dependent on the internet, or other similar electronic networks, where players are geographically remote from one another;
  • Supply of distance education services;
  • Supply of advertising space on a website and the related rights to that advertisement; and
  • Live broadcast via the internet.