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VAT Standard rate

VAT standard rate in the Sultanate of Oman in 2024 is 5%, which applies to supplies of all goods in the Oman and import, with exemptions for health care and education related goods. Export in Oman, basic food and medicine supplies are zero-rated.
VAT Standard rate 5% VAT Reduced rate - Thresholds EUR 91,000
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VAT registration threshold

Non-resident businesses without a permanent establishment must register the VAT in Oman regardless of the amount of turnover. Resident businesses must register for VAT purposes in Oman, if their turnover in the previous 12 months exceeded OMR 38,500 (approx. EUR 91,000). Voluntary registration is also allowed, if annual turnover of the business exceeded OMR 19,250 (approx. EUR 45,500). Businesses which supply only exempt goods to Oman do not need to register for VAT in Oman.

Tax representative

Non-resident businesses which do not have permanent establishment in Oman must appoint legal tax representative who has a residence in Oman.

Registration procedure

Non-resident businesses must apply for VAT registration in Oman in ellectronical form. Filed excel form with the following documents should be send to the Sultanale of Oman Tax Authority:
  • Copy of the company registration documents;
  • Copy of the indentification documents;
  • Copy of the bank gurantee;
  • Copy of the valid agreement appointing the Tax Representative;
  • Copy of proof os employment of the Chief Officer.
Additional information may be requested by the tax office.

Deductible VAT

Businesses can reclaim input tax by deducting it from output tax. Expenses that are not relevant to the business cannot be claimed for deduction. Input tax is not recoverable to the businesses that are not registered for VAT purposes in the Oman.

Keeping records

The period of keeping records in Bangladesh must be at least ten years.

VAT returns filing and payment date

VAT returns in Oman must be submitted electronically on quarterly basis. The deadline for filing and payment is the last day of the month following the reporting period.

Penalties in Oman

Penalty for non-submitted VAT return or incorrect data in it – imprisonment and/or penalties may be applied.
September 26, 2024 104
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