What is Value Added Tax?
Value Added Tax [VAT] is an indirect tax that has been introduced by in the Sultanate of Oman and is payable by both Corporate and Individuals
When will VAT come into effect?
VAT will be effective from 16-Apr-2021
How much extra VAT to be paid?
The standard rate of VAT is 5%. This is applicable to Telecom products and services.
Is it compulsory to pay VAT?
The General Rules on who will pay VAT and what goods and services will come under VAT etc. is mentioned on the Tax Authority website at https://tms.taxoman.gov.om/portal/web/taxportal/vat-tax
What is Renna Mobile’s VAT registration details?
Renna Mobile is a Telecom Brand of Majan Telecommunication LLC and will fall under VAT. Majan Telecommunication LLC’s VAT number is VATIN OM1100023166
How VAT will be charged to Renna Mobile Customers ?
1. When you will be using your Renna Mobile Credit to call or to send SMS / MMS or use data / Internet without any bundle.
2. VAT will not be charged when you will recharge your Renna Mobile with Physical / EVD credit / vouchers.
3. VAT will be charged when you will be subscribing to any bundle
What is the VAT impact when I buy a new SIM ?
You do not need to pay any VAT when you buy a new SIM. Renna Mobile SIM has RO 2 credit. VAT will be charged after activation when you will be using this RO 2 credit to call / subscribe a bundle.
How VAT will impact in Recharge sale – physical voucher or EVD ?
There is no VAT charged for credit recharge. So when a customer is buying a physical Voucher or EVD for credit recharge then no VAT will be charged from customers.
5% VAT will be charged on EVD Plan Vouchers . E.g. a customer subscribes present “RO 3 – 1.5GB” data / internet bundle from 16-Apr-2021, then he will be charged RO 3.150 i.e. 3 RO for the bundle and 150 Bz for VAT. Majan will pay the collected 150 Bz VAT to the Tax Aauthority
When VAT will be charged?
- VAT will be charged when,1- You will be subscribing to a bundle – that can be data / internet or local calling or international calling bundle.
2- You will be using data without bundle or making a call or sending SMS / MMS or using the credit balance for any other services.
3- Please note, if you subscribe to a bundle then VAT will be charged when you are customer is subscribing the bundle and not when you are using the data / internet / minutes of the bundle.
You recharged your mobile with RO 5 then
1- You made a local call : VAT will be charged on calling tariff.
2- Used Data: VAT will be charged on PayG Data / internet tariff.
3- Sent a SMS / MMS : VAT will be charged on SMS/MMS tariff.
You recharged your mobile with RO 5 and subscribed RO 3 – 1.5GB Data bundle, then
1- VAT will be charged on “RO 3 – 1.5 GB” bundle & customer will be paying RO 3.150. Renna mobile will collect the VAT of 150 Bz and then deposit it to the Tax Authority.
2- Made a local call: VAT will be charged on calling rate / tariff.
3- Used Data: no VAT will be charged because VAT was already charged when you subscribed the bundle.
4-Sent SMS / MMS: if it is not using internet / data then VAT will be charged. But if it is using internet then it will not be charged VAT.
You recharge your mobile with RO 5 and then subscribed RO 3 – 1.5GB Data bundle and RO 1 Local calling bundle
1- VAT will be charged on “RO 3 – 1.5 GB” bundle and for “RO 1 – local calling bundle”. You will be paying RO 3.150 for Data bundle and RO 1.050 for the local calling bundle. Renna mobile will collect the VAT of 150 Bz and 50 Bz & then will deposit it to the Tax Authority.
2- made a local call: No VAT will be charged till customer is using the minutes of the local calling bundle. If the customer used all the minutes of the bundle and then makes a call then VAT will be charged on calling tariff/rate.
3- Used Data: no VAT will be charged because VAT was already charged when the customer subscribed the bundle.
4- Sent SMS / MMS: if it is not using internet / data then VAT will be charged. But if it is using internet then it will not be charged VAT.
5-Made an international call: VAT will be charged on the calling tariff / rate.