VAT Obligations
Written in plain language for general understanding. This is educational content, not legal advice. Based on Omani royal decrees, ministerial decisions, and the Basic Statute of the State.
Omani National Law
What is this right?
Oman introduced a Value Added Tax (VAT) in April 2021:
- Standard rate: 5% on most goods and services.
- Zero-rated items: Certain goods and services are taxed at 0%, including basic food items, medical supplies, and exports.
- Exempt items: Some services are VAT-exempt, including financial services, bare land, and local passenger transport.
- Registration threshold: Businesses with annual supplies exceeding OMR 38,500 must register for VAT. Voluntary registration is available for businesses above OMR 19,250.
- Filing: VAT returns are filed quarterly through the Tax Authority's online portal.
When does it apply?
- You own a business with annual turnover above OMR 38,500 — you must register and charge VAT.
- You are a consumer — VAT is included in the price of most goods and services you buy.
- You are importing goods into Oman — VAT is charged at the customs border.
What should you do?
- Register for VAT with the Tax Authority if your business meets the threshold.
- Charge VAT on invoices and issue proper tax invoices to customers.
- File quarterly returns and pay any VAT due on time.
- Keep VAT records for at least 10 years.
What should you NOT do?
- Do not fail to register if you exceed the mandatory threshold — penalties apply.
- Do not charge VAT without registration — this is illegal.
- Do not miss filing deadlines — late filing and payment attract fines.
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