How do I extract VAT from a tax-inclusive amount?

Divide the gross amount by (1 + tax rate). Example for 5%: 105 ÷ 1.05 = 100 (pre-tax). Tax = 5.

How do I calculate VAT in Oman on a price of OMR 100?

To add 5% VAT: 100 × 1.05 = OMR 105 total (VAT = OMR 5). To extract VAT from a VAT-inclusive price of OMR 105: 105 ÷ 1.05 = OMR 100 (pre-tax). Use the calculator above for instant results on any amount.

Does VAT apply to rent in Oman?

Residential property rental is exempt from VAT in Oman. Commercial property rental is subject to 5% VAT.

Is there VAT on food in Oman?

Basic foodstuffs — including wheat, rice, milk, cooking oil, and sugar — are zero-rated (0% VAT) in Oman. Prepared food and restaurant meals are generally subject to 5% VAT.

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VAT Calculator — Gulf Countries

Q: What is VAT (Value Added Tax)?

VAT is an indirect consumption tax applied to most goods and services. The final consumer pays it; businesses collect and remit it to the government.

Q: How do I calculate 5% VAT on an amount?

Multiply the amount by 0.05. Example: OMR 100 × 0.05 = OMR 5 tax. Total including VAT = OMR 105.

Q: Which goods are VAT-exempt in Oman?

Exemptions include: basic foodstuffs (wheat, rice, milk), educational services, healthcare and licensed medications, residential property rental, and financial and banking services.

Q: Why is Saudi Arabia's VAT rate 15% instead of 5%?

Saudi Arabia raised its VAT rate from 5% to 15% in July 2020 to address fiscal pressures from the COVID-19 pandemic and low oil prices. Oman, UAE, and Bahrain have kept their rates lower.

Q: When must a business register for VAT in Oman?

Mandatory registration applies when annual revenues exceed OMR 38,500. Voluntary registration is possible from OMR 19,250. The competent authority is the Tax Authority — taa.gov.om.

Q: When was VAT introduced in Oman?

Oman introduced VAT at 5% from April 2021, becoming the fifth GCC member state to implement the tax.

Q: Are exports zero-rated for VAT in Oman?

Yes. Exports from Oman are zero-rated (0% VAT). The exporter charges no VAT to the foreign buyer but retains the right to reclaim input VAT paid.

Oman • Saudi Arabia • UAE • Bahrain • Qatar • Kuwait

VAT (Value Added Tax) is applied across Gulf countries. Oman implemented 5% VAT in April 2021 on most goods and services. This calculator supports 6 GCC countries and lets you add VAT to or extract it from any amount.

Country Calculation type

Amount before tax

Gulf VAT Rates

Country	VAT %	Effective Date
🇴🇲 Oman	5%	April 2021
🇸🇦 Saudi Arabia	15%	July 2020
🇦🇪 UAE	5%	January 2018
🇧🇭 Bahrain	10%	January 2019
🇶🇦 Qatar	Not applied *	—
🇰🇼 Kuwait	Not applied *	—

⚠️ These figures are for informational purposes — always verify with official tax authorities.

🇴🇲 VAT in Oman — Key Facts

The Sultanate of Oman implemented VAT at 5% from April 2021, applied to most goods and services in the Omani market.

VAT-exempt categories in Oman:

Basic foodstuffs (wheat, rice, milk, bread, etc.)
Healthcare services and licensed medications
Educational services in accredited institutions
Residential property rental
Financial and banking services

Competent authority: Tax Authority — taa.gov.om | Last updated: August 2026

📊 Quick Examples — Total including VAT

Pre-tax amount → Total after adding VAT by country

Amount	🇴🇲 Oman 5%	🇦🇪 UAE 5%	🇧🇭 Bahrain 10%	🇸🇦 Saudi 15%
100	105	105	110	115
500	525	525	550	575
1,000	1,050	1,050	1,100	1,150
2,000	2,100	2,100	2,200	2,300
5,000	5,250	5,250	5,500	5,750
10,000	10,500	10,500	11,000	11,500

Amounts in each country local currency. * Qatar and Kuwait have not yet implemented VAT.

❓ FAQs about VAT

What is VAT (Value Added Tax)?

VAT is an indirect tax applied to most goods and services. It is paid by the end consumer and collected by businesses on behalf of the government.

How do I calculate 5% VAT on an amount?

Multiply the amount by 0.05. Example: 100 × 0.05 = 5 tax. Total = 105.

How do I extract VAT from a VAT-inclusive amount?

Divide the inclusive amount by (1 + tax rate). Example: 105 ÷ 1.05 = 100 (before tax). Tax = 5.

Which goods are VAT-exempt in Oman?

VAT-exempt items include: basic foodstuffs, healthcare and medicines, educational services, residential rental, and financial services.

Why is Saudi Arabia's VAT rate 15% instead of 5%?

Saudi Arabia raised its VAT from 5% to 15% in July 2020 due to fiscal pressures from COVID-19 and lower oil prices. Oman and UAE have maintained the 5% rate.

When must a business register for VAT in Oman?

Businesses must register when annual turnover exceeds OMR 38,500. Voluntary registration from OMR 19,250. Competent authority: Tax Authority taa.gov.om.

When was VAT introduced in Oman?

Oman implemented VAT at 5% in April 2021, making it the fifth GCC country to introduce VAT, after UAE (2018), Saudi Arabia, and Bahrain.

Are exports zero-rated for VAT in Oman?

Exports from Oman are zero-rated (0% VAT). Exporters do not charge VAT to foreign buyers but can reclaim any input VAT paid locally.

How to calculate VAT on a restaurant bill in Oman?

Prepared food and restaurant meals are subject to 5% VAT in Oman. Example: bill OMR 20 → VAT = 20 × 0.05 = OMR 1 → total = OMR 21. Enter the amount in the calculator above and select Oman 5% for the instant result.

Does VAT apply to salaries and wages in Oman?

No. Salaries and wages are not subject to VAT in Oman. Employment income is outside the scope of VAT. For salary calculations including SPF deduction, use the Salary Calculator.

How do I add 5% VAT to a price in Oman?

Multiply the pre-tax price by 1.05. Examples: OMR 50 × 1.05 = OMR 52.5 | OMR 200 × 1.05 = OMR 210 | OMR 1,000 × 1.05 = OMR 1,050. Use the calculator above for any amount instantly.

VAT in Gulf Countries — Rates and Zero-Rated Categories

Value Added Tax (VAT) was introduced across GCC countries at different times. The UAE and Saudi Arabia introduced 5% VAT in January 2018; Saudi Arabia raised its rate to 15% in July 2020. Oman introduced 5% VAT in April 2021. Bahrain introduced 5% in January 2019 (raised to 10% in 2022).

Adding vs. extracting VAT

Add VAT: multiply the pre-tax price by (1 + rate). Example: 100 OMR + 5% = 105 OMR
Extract VAT: divide the VAT-inclusive price by (1 + rate). Example: 105 ÷ 1.05 = 100 OMR pre-tax

Common zero-rated and exempt categories

Basic foods, healthcare services, residential rent, and international exports are zero-rated (0% VAT) or exempt in most GCC countries. Financial services may also be exempt. Always consult the local tax authority for definitive guidance on your specific goods or services.