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June 26, 2026

Transfer of Activity

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. Background

  1. 2.1. What Is an Activity?

  2. 2.2. What Is the Transfer of Activity?

3. Conditions for Transfer of Activity Without VAT

  1. 3.1. Conditions

  2. 3.2. Administrative Obligations

4. Registering for VAT

  1. 4.1. Registration by Transferee

  2. 4.2. Registration Cancellation Due to Transfer of an Activity

5. Special Cases

  1. 5.1. Transfer of an Activity Between Members of the Same VAT Group

  2. 5.2. Transfer of Real Estate

  3. 5.3. Transfer of Shares

6. Input Tax Deduction

  1. 6.1. General

  2. 6.2. Deduction of VAT by the Transferor

  3. 6.3. Deduction of VAT by the Transferee

Introduction

About This Guide

Transfers of business assets are typically charged with Value Added Tax (VAT), but some special rules exist which relieve VAT when those assets as supplied as part of the transfer of an activity (sometimes called the 'transfer of a business' or 'transfer of a going concern').

The purpose of this guide is to provide guidance and clarifications regarding the VAT treatment and implications in relation to the transfer of an activity 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 are intending to act as the transferor or transferee of a business activity – whether a full business or partial business transfer.

Definitions

The following terms are dealt with in this guide: