Oman implemented VAT on April 16, 2021, at a standard rate of 5%, in line with the Gulf Cooperation Council (GCC) VAT framework. The system includes standard-rated, zero-rated, and exempt categories, depending on the type of goods or services.
| Category | Rate | Details |
|---|---|---|
| Standard Rate | 5% | Applies to most goods and services. |
| Zero-Rated Supplies | 0% | Includes exports, basic food items, medicines, medical equipment, etc. |
| Exempt Supplies | 0% | No VAT charged; includes healthcare, education, residential property sales. |
| Registration Threshold | OMR 38,500 | Mandatory VAT registration for businesses above this annual turnover. |
| Voluntary Registration | OMR 19,250 | Allowed for businesses with lower turnover or expenses. |
| Administered By | Oman Tax Authority | Responsible for compliance, returns, and enforcement. |
| VAT Filing | Periodic | Businesses must file returns and maintain records regularly. |
Conclusion
Oman’s VAT framework is structured to promote fiscal sustainability while minimizing the burden on essential goods and services. With a standard rate of 5% and well-defined exemptions and zero-rated categories, it provides clarity and predictability for businesses and consumers alike. Companies must stay compliant with filing obligations and ensure proper recordkeeping.
For practical tools, you can use the Oman VAT Calculator to compute your VAT obligations, or explore the Indonesia VAT Calculator for comparative insights.
To learn more, check out these resources: