Oman VAT Calculator
Add 5% VAT to a price in Omani rials, or find how much VAT is inside a total.
How your Oman VAT is worked out
Add VAT: amount × 1.05. Remove VAT: total × 5 ÷ 105.
- 1
Work out the VAT
OMR 1,000.000 × 5%
= OMR 50.000 - 2
Add it on
OMR 1,000.000 + OMR 50.000
= OMR 1,050.000 - 3
Your VAT return
OMR 50.000 − OMR 0.000
= OMR 50.000 to pay
Read more: the formula, a worked example, what's zero-rated or exempt, and registration
The formula
Add VAT: total = price × 1.05
VAT = price × 5 ÷ 100
Remove VAT: VAT = total × 5 ÷ 105
price before VAT = total ÷ 1.05
From the VAT: price = VAT × 20, total = VAT × 21
VAT return: output VAT − input VAT = to pay (or back)
Zero-rated and exempt items add nothing to the VAT. Each line is rounded to the nearest baisa (OMR 0.001), and the invoice totals add up the rounded lines.
Worked example
OMR 1,000 plus 5% VAT is OMR 1,000 × 5 ÷ 100 = OMR 50.000 of VAT, so the total is OMR 1,000 + OMR 50 = OMR 1,050.000. To take the VAT out of OMR 1,050, work out 1,050 × 5 ÷ 105 = OMR 50.000, leaving OMR 1,000.000. A common mistake is to take 5% of OMR 1,050, which gives OMR 52.500 instead of the correct OMR 50.000.
If this is your only sale in the period and you paid no VAT on purchases, your VAT return shows OMR 50.000 − OMR 0.000 = OMR 50.000 to pay.
Quantity, discount, rounding and mixed invoices
VAT is charged on the price after any discount shown on the invoice. 3 items at OMR 100 with a 10% discount come to OMR 300 × 0.9 = OMR 270, so VAT is OMR 13.500 and the total OMR 283.500. An invoice with OMR 200 of standard-rated goods, OMR 100 of zero-rated items and OMR 50 of exempt items carries VAT of OMR 10.000 only (5% of OMR 200), for a total of OMR 360.000. Taking the VAT out of OMR 100 gives 100 ÷ 1.05 = 95.238095…, which rounds to OMR 95.238, so the VAT is OMR 4.762.
Standard, zero-rated and exempt (Oman)
| Treatment | VAT | Examples from the Tax Authority |
|---|---|---|
| Standard | 5% | Most goods and services |
| Zero-rated | 0% | Exports, certain healthcare services, certain food items |
| Exempt | none | School fees listed in the regulations, sales of bare land, certain financial services such as life insurance |
These are examples, not the full lists; check with the Tax Authority for your own supplies. VAT paid on costs linked to zero-rated sales can usually be claimed back, but VAT on costs linked to exempt sales usually can't.
Registration thresholds (Oman)
The Tax Authority sets the mandatory registration threshold at OMR 38,500 (VAT Law Article 55) and the voluntary threshold at OMR 19,250 (Article 61). The calculator also lets you enter sales expected in the next 12 months and taxable expenses; ask the Tax Authority whether those count for your business.
Other Oman notes
VAT was introduced in Oman in April 2021.
Sources
Checked on 13 October 2026 on the Oman Tax Authority's own pages: the 5% rate and the zero-rated and exempt examples (Tax Authority VAT FAQs) and the OMR 38,500 and OMR 19,250 thresholds (Chairman's decision on registration thresholds). For general information only: check with the Tax Authority or a registered tax adviser before you issue invoices or file a return.
Common questions
How do I calculate 5% VAT in Oman?
Multiply the price by 5 and divide by 100 to get the VAT, or multiply it by 1.05 to get the total. OMR 1,000 plus 5% VAT is OMR 50.000 of VAT, so the total is OMR 1,050.000. The rial has 1,000 baisa, so amounts are shown to 3 decimals.
How do I remove VAT from a price in Oman?
Multiply the VAT-inclusive total by 5 and divide by 105 to get the VAT, or divide the total by 1.05 to get the price before VAT. OMR 1,050 × 5 ÷ 105 = OMR 50 of VAT, leaving OMR 1,000. Taking 5% of OMR 1,050 gives OMR 52.500, which is wrong.
When does a business have to register for VAT in Oman?
The Tax Authority sets the mandatory registration threshold at OMR 38,500 and the voluntary threshold at OMR 19,250. Ask the Tax Authority how expected future sales, expenses and exempt sales count for your business.
What is zero-rated and exempt under Oman VAT?
According to the Tax Authority, exports, certain healthcare services and certain food items are zero-rated (0% VAT). School fees listed in the regulations, sales of bare land and certain financial services such as life insurance are exempt (no VAT).
How do I work out the VAT to pay on my Oman VAT return?
Take the VAT you paid on business costs (input VAT) away from the VAT you charged on sales (output VAT). If the answer is positive, you pay it; if it's negative, the difference can be reclaimed or carried forward. With OMR 50 of output VAT and no input VAT, you pay OMR 50.
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