How to Cancel VAT Registration in Oman?


Yarab A | Updated on: January 10, 2022

All businesses that have a place of residence in Oman and whose value of supplies or expenses exceeds the registration threshold limit should register under Oman VAT. Even if they anticipate exceeding the threshold limit, businesses can register under VAT. While they can register based on the supply threshold, the law also allows them to cancel their VAT registration.

Let us understand the circumstances for the cancellation of VAT registration and the process to be followed.

What is registration cancellation?

Cancellation of registration is a provision that allows businesses to cancel their VAT registration. In simple words, the VAT registration will be de-activated. From that date onwards, they will not be permitted to levy VAT on supplies, claim input VAT on purchases/expenses, and be relieved from other compliance responsibilities.

VAT Registration Guide in Oman Business Benefits of Voluntary VAT Registration

A registration cancellation request can be applied for by a person registered under VAT or done by the FTA on finding that a person meets the conditions for de-registration.

When can a business apply for VAT registration cancellation?

Businesses registered under VAT can apply for cancellation in the following cases:

  • Cessation of carrying of the activity
  • Cessation of providing taxable supplies
  • If the value of the supplies falls below the voluntary registration threshold
  • Any other cases determined by the Regulations

Note that a person who has voluntarily registered under VAT cannot apply for registration cancellation in the 12 months following the date of registration.

Process for VAT registration cancellation in Oman VAT

  • Businesses should apply to cancel the registration to the authority within the prescribed dates.
  • In case of ceasing to conduct the activity permanently, it should be applied within a period of 30 days from the date of such an event
  • Within a period of (2) two months from the end of the tax year in the following circumstances:

    • Ceasing to provide taxable supplies

    • If the value of taxable supplies in the previous 12 months falls below the voluntary registration threshold and the value of taxable supplies will not exceed the mandatory registration threshold in the next twelve (12) months

    • If it is expected that the value of taxable supplies in the following twelve (12) months will not exceed the Voluntary Registration Threshold

    • Where the activity of the registrant is transferred to another person –fully or partially

  • The authority shall decide on the application to cancel registration within thirty (30) days from completing all required details and documents. Otherwise, the application shall be considered rejected

Details to be submitted for VAT registration cancellation

An application to cancel registration should be submitted to the authority on the prescribed form and include the following information:

  • The name of the registrant
  • The registrant’s tax identification number
  • Reasons for and evidence of meeting the de-registration conditions
  • Date of meeting the cancellation condition
  • The estimated value of assets on hand on the submission date of the de-registration application
  • Details of the value of supplies in the last 12 months and an estimate of the value of supplies in the next 12 months.
  • Details of the value of expenses in the last 12 months and an estimate of the value of the expenses in the next twelve 12months.
  • Any other information determined by the authority.

It is important to note that a business whose registration has been cancelled must keep the records and accounting books for a period of 10 years from the date of notification of the cancellation.

Also,  businesses are required to allow inspection of the records and accounting books whenever requested by the authority. Using accounting software should be handy in recording and retaining the books of accounts as per the law. TallyPrime is business management software enabled with a complete VAT solution for Oman. Right from issuing tax invoices to filing VAT returns, TallyPrime is a one-stop solution for VAT and business requirements.

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