TL;DR — the key facts
What you need to know
Oman introduced VAT in April 2021, the last GCC country to do so. The standard rate is 5%, the same as UAE. Zero-rated supplies include exports, international transport, and certain foods and medicines.
Unlike most GCC states, Oman levies corporate income tax at 15% on net profits. Small businesses (Omani-owned, revenue below OMR 100,000) may qualify for a reduced 3% rate.
Timeline
April 2021
VAT introduced in Oman at 5%.
VAT and invoicing compliance
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5%, introduced in April 2021. This is the same rate as the UAE. Zero-rated supplies include exports, international transport, certain food items, medicines, and educational services.
Businesses with taxable supplies or imports exceeding OMR 38,500 in the previous 12 months must register. Voluntary registration is available at OMR 19,250.
Yes, unlike most GCC countries. The standard corporate income tax rate is 15% on net taxable profits. Omani-owned small businesses with revenue below OMR 100,000 may qualify for a reduced 3% rate.
Supplier name, address, and VATIN; customer name and address; invoice number and date; description of supply; taxable value; VAT amount at 5%; and total amount. Arabic is acceptable; English is also widely used.
Quarterly for most businesses. Returns are due within 30 days of the end of the quarter. Small businesses below OMR 500,000 annual taxable supplies may be eligible for annual filing.
