The governments of many countries allow taxable person to register as VAT tax groups. Under this mechanism, more than one company can get a common VAT registration as a VAT tax group under single common control. The VAT returns and VAT payments are carried out by the member who acts as a representative of this VAT group. However, all the members of the group are jointly liable for the payments and returns. The group members can make any transaction or supply within the group and there is no need for VAT accounting for inter-group transations.
Condition to register as VAT Group
Under the Oman VAT Law, two or more persons may register and may be treated subsequently as a Tax Group, provided the following conditions are met;
The Executive Regulations says that if a person who has the right to directly or indirectly control other persons’ activities or commercial matters, or owns more than 50% of the voting rights of the legal person or more than 50% of the capital of the legal person then control exists and such persons can register as group.
Documents Require for Registration:
The persons in the tax group must appoint one of them as a representative of the group. A Registration Application for the tax group must be submitted
The Authority shall approve the application for Tax Group registration within a period not exceeding thirty (30) days from the date of completing all the details and documents, otherwise the application will be considered rejected.
Implication of VAT after Group Registration:
The Tax Group Registration results in the following:
Notification for Changes:
The representative of the tax group is required to notify the Authority of any changes that occur to the details previously submitted to the tax group registration application within thirty (30) days from the occurrence of those changes on the form prepared for such like adding or removing members in the group, change in the group representation, any change in the control pattern, cancellation of the group or any other relevant change.
It is necessary that when a member leaves the Tax Group or upon the cancellation of the Tax Group, the person must apply for re-registration in the event that he is still required to register as per the Law.
Taysir Al Rawahi