How VAT is calculated in Oman
The most common mistake when working backwards is subtracting 5% of the gross price. VAT is charged on the net figure, so you must divide by 1.05, not multiply by 0.95.
Registration and compliance
VAT in Oman is administered by the Oman Tax Authority. Registration is mandatory above OMR 38,500 mandatory of annual taxable supplies. Registered businesses charge VAT on sales (output tax), reclaim VAT on business purchases (input tax) and file returns — usually quarterly, monthly for larger businesses.
GCC VAT rates compared
| Country | Standard rate | Introduced |
|---|---|---|
| Saudi Arabia | 15% | 2018 (raised 2020) |
| Bahrain | 10% | 2019 (raised 2022) |
| UAE | 5% | 2018 |
| Oman | 5% | 2021 |
| Qatar | 0% — not yet introduced | — |
| Kuwait | 0% — not yet introduced | — |
Frequently asked questions
What is the VAT rate in Oman?
5% standard rate, in force since 16 April 2021. Some goods and services are zero-rated or exempt.
How do I add 5% VAT to a price?
Multiply by 1.05. OMR 1,000 + VAT = OMR 1,050.
How do I remove VAT from a Oman price?
Divide the VAT-inclusive price by 1.05. OMR 1,050 ÷ 1.05 = OMR 1,000 net; VAT = OMR 50. Do not subtract 5% of the gross figure — that gives the wrong answer.
Who has to register for VAT in Oman?
Businesses whose taxable supplies exceed OMR 38,500 mandatory / OMR 19,250 voluntary registration. Registration is through the Oman Tax Authority.
What is zero-rated in Oman?
Typically: basic food items (list of 488), medicines and medical equipment, exports, international transport, investment gold/silver/platinum, crude oil and gas. Zero-rated suppliers can still reclaim input VAT.
What is VAT-exempt in Oman?
Typically: financial services, healthcare, education, residential rent and resale, bare land, local passenger transport. Exempt suppliers cannot reclaim input VAT on related costs.
Can tourists reclaim VAT?
Oman does not currently operate a general tourist VAT refund scheme.