Oman introduced Value Added Tax (VAT) at a standard rate of 5% in April 2021. If you run a business in Oman, here's what you need to know.
Who must register for VAT?
Businesses with annual taxable supplies exceeding OMR 38,500 must register for VAT with the Oman Tax Authority (OTA). Businesses between OMR 19,250 and OMR 38,500 may register voluntarily.
What is taxable?
Most goods and services supplied in Oman are subject to the standard 5% VAT rate. Key exemptions include:
- Zero-rated (0%): Exports, international transport, certain financial services
- Exempt: Residential property rental, certain healthcare and educational services
How to file your VAT return
VAT returns in Oman are filed quarterly through the OTA's online portal. You must submit:
- Total taxable sales (output VAT)
- Total taxable purchases (input VAT)
- Net VAT payable or refundable
The deadline is the last day of the month following the end of the quarter.
How eHissab handles VAT automatically
eHissab is built for Oman VAT from the ground up:
- Automatic VAT calculation on every invoice line item
- VAT-compliant invoice format meeting OTA requirements
- Quarterly VAT report ready to export and file in minutes
- Input VAT tracking on supplier bills
- Tax summary dashboard showing your VAT position at any time
No manual calculations. No spreadsheets. Just accurate VAT reports whenever you need them.
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