What is the VAT rate in Oman?

Oman's standard VAT rate is 5%, introduced on 16 April 2021 under Royal Decree 121/2020. This is the third-lowest VAT rate in the GCC after the UAE (5%) and the same rate as Saudi Arabia (15% since 2020). Some goods are zero-rated (0%) and others are exempt from VAT.

What goods are zero-rated for VAT in Oman?

Zero-rated goods and services in Oman may include qualifying basic food items, certain medicines and medical equipment, certain education and healthcare services, oil and gas exports, and international transport services. Classification of specific goods can vary — verify with the Oman Tax Authority (taxoman.gov.om) for the current definitive list.

What goods are exempt from VAT in Oman?

VAT-exempt supplies in Oman include: financial services (interest, insurance in many cases), bare land sales, local passenger transport, residential building rent, and certain charitable activities.

When must a business register for VAT in Oman?

Mandatory VAT registration threshold: OMR 38,500 of annual taxable turnover. Voluntary registration is available for businesses with taxable turnover above OMR 19,250 per year. Businesses below these thresholds are not required to register and cannot charge VAT.

How do I calculate VAT in Oman?

VAT calculation: (1) Add VAT: Price × 1.05 = Total with VAT. (2) Extract VAT from total: Total ÷ 1.05 × 0.05 = VAT amount. Example: OMR 100 item × 1.05 = OMR 105 total. The OMR 5 difference is VAT. Use the VAT Calculator on Adawati for instant results.

Home › Oman VAT Guide 2026

Oman VAT Guide 2026

5% VAT Rate · Zero-Rated Items · Registration Threshold

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VAT Categories in Oman

Category	VAT Rate	Examples
Standard Rate	5%	Restaurants, electronics, clothing, fuel, telecoms, hotels
Zero-Rated	0%	Qualifying goods per OTA rules (e.g. basic food, medicines, healthcare, education, exports) — full definitive list at taxoman.gov.om
Exempt	No VAT	Financial services (interest), bare land, local passenger transport, residential rent

Oman VAT Registration

Threshold Type	Annual Taxable Turnover	Action Required
Mandatory registration	OMR 38,500+	Must register for VAT
Voluntary registration	OMR 19,250–38,499	Can choose to register
Below threshold	Under OMR 19,250	Cannot register or charge VAT

How VAT is Charged in Oman

VAT-registered businesses add 5% to their prices at the point of sale. The VAT is collected on behalf of the Oman Tax Authority (OTA) and remitted quarterly or monthly depending on registration type.

Item Price	VAT (5%)	Total You Pay
OMR 10.000	OMR 0.500	OMR 10.500
OMR 50.000	OMR 2.500	OMR 52.500
OMR 100.000	OMR 5.000	OMR 105.000
OMR 500.000	OMR 25.000	OMR 525.000
OMR 1,000.000	OMR 50.000	OMR 1,050.000

Oman vs Other GCC Countries — VAT Comparison

Country	VAT Rate	Introduced
🇸🇦 Saudi Arabia	15%	2018 (raised from 5% in 2020)
🇦🇪 UAE	5%	January 2018
🇧🇭 Bahrain	10%	2019 (raised from 5% in 2022)
🇴🇲 Oman	5%	April 2021
🇶🇦 Qatar	0%	Not yet introduced
🇰🇼 Kuwait	0%	Not yet introduced

💡 For Individuals: You don't need to register for VAT or file VAT returns as an employee. You simply pay 5% VAT on applicable purchases. Certain items such as qualifying basic food, education services, and healthcare may be zero-rated — verify with the Oman Tax Authority (taxoman.gov.om) for the current official list.

FAQ

Do I pay VAT on my salary or rent in Oman?

No. Employee salaries are not subject to VAT. Residential rent is also VAT-exempt. You only pay VAT on purchases of goods and services at standard-rated businesses.

Is food zero-rated or 5% VAT in Oman?

Many basic food items (such as rice, bread, milk, eggs, vegetables, and fresh meat) may qualify for zero-rating at 0% VAT, though classification of specific items can vary. Processed food, restaurant meals, and fast food are generally subject to the standard 5% VAT. Verify with the Oman Tax Authority (taxoman.gov.om) for specific items.

Can tourists get VAT refunds in Oman?

Oman is developing a tourist VAT refund scheme. As of 2026, check with the Oman Tax Authority for the latest status on tourist VAT refund availability at airports and ports.

📌 Sources & Disclaimer
VAT information sourced from: Oman Tax Authority (taxoman.gov.om) | Royal Decree 121/2020 | Oman VAT Executive Regulations.
Last updated: September 2026. VAT rates and exemptions can change — verify with the Oman Tax Authority before filing or making business decisions.

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