Oman VAT Guide 2026

Standard Rate: 5%

Oman's VAT rate is 5%, one of the lowest in the GCC (alongside Saudi Arabia and Qatar). The 5% rate applies to most goods and services supplied in Oman, including retail goods, professional services, construction, telecommunications, and hospitality. The VAT law follows the GCC Unified VAT Agreement framework.

Key supplies at 5%: General goods, professional services, restaurant meals, hotel accommodation, vehicle sales, electronics, furniture, clothing, and most consumer products.

Registration Threshold: OMR 500,000

Businesses with annual taxable supplies exceeding OMR 500,000 must register for VAT. Registration is mandatory once the threshold is met. Voluntary registration is permitted for businesses below the threshold. There is no separate low-value registration threshold for non-resident businesses — they must register if they make taxable supplies in Oman.

Threshold example: A Muscat-based retailer with annual turnover of OMR 620,000 must register for VAT. A small consultancy with turnover of OMR 120,000 can voluntarily register (useful to recover input VAT on expenses like rent and professional fees).

Zero-Rated Supplies

The following supplies are zero-rated (0% VAT with credit for input tax):

• Exports of goods and services outside Oman
• International transport (air, sea, land of passengers and goods)
• Supply of crude oil, natural gas, and refined petroleum products
• Supply of precious metals (gold, silver, platinum) for investment
• First supply of residential buildings (within 3 years of completion)

Exempt Supplies

Exempt supplies (no VAT charged, no input recovery) include: basic food items (rice, bread, milk, eggs, meat, vegetables), medical services and pharmaceuticals, educational services (schools, universities), financial services (loans, insurance, Islamic finance transactions), real estate leases (residential), and certain public transport services.

Quarterly Returns

VAT returns are filed quarterly within 28 days of the end of each quarter. The quarters are: Jan–Mar, Apr–Jun, Jul–Sep, Oct–Dec. Returns must be filed electronically through the GTA (Secretariat General of Taxation) portal. Late filing penalties: OMR 500 for the first month, OMR 100 per subsequent month. Late payment: 1% interest per month on unpaid VAT.

Excise Tax

Oman imposes excise tax on goods harmful to health and the environment:

• 100% rate: Tobacco and tobacco products, alcohol and alcoholic beverages, pork products
• 50% rate: Energy drinks, soft drinks with sugar content exceeding specified limits

Excise tax is levied at the point of import or release for consumption in Oman. It is calculated on the excise price (including customs duties but excluding VAT).