Knowledge centre
VAT in Oman, explained clearly
Value added tax has applied in Oman since 16 April 2021. Here are the concepts finance teams use every day, each tied to its source.
- Sources cited inline
- Last reviewed 5 October 2026
Last reviewed:
What is the VAT rate in Oman?
The standard VAT rate in Oman is 5% of the taxable value. VAT was introduced by the VAT Law issued by Royal Decree 121/2020 and has applied since 16 April 2021.
The law and the rate
Oman's VAT Law was issued by Royal Decree 121/2020 on 12 October 2020 and published in Official Gazette No. 1362 on 18 October 2020. It came into force 180 days after publication, on 16 April 2021. The detailed rules sit in the Executive Regulation, which Decision 189/2026 amended to introduce e-invoicing.
The standard rate is 5% of the taxable value (VAT Law).
Registration
Registration depends on the value of your annual taxable supplies. Professional summaries of the Executive Regulation (CMS, Deloitte) report a mandatory registration threshold of OMR 38,500 and a voluntary threshold of OMR 19,250. Confirm your position with the Oman Tax Authority before acting on these figures.
Everyday VAT
Core concepts
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Tax invoices
The VAT Law sets out when a tax invoice must be issued. Under Decision 189/2026 it must be issued in an approved and secure electronic format from your mandatory date.
E-invoicing guide: Tax invoices -
Credit notes
A credit note reduces the value of a previously issued invoice — for a return, discount or correction — and should reference the original document.
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Debit notes
A debit note increases the amount due on an earlier invoice, for example after an undercharge. It too should link to the original.
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VAT returns
A return is due within 30 days after the end of each tax period, on the prescribed form, and is filed through the OTA's e-services portal.
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Record keeping
Keep complete records of invoices, notes and the workings behind each return. Confirm the required retention period with the OTA or your adviser.
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Input and output tax
Output VAT on your sales and input VAT on your purchases come together in the return figures for each period.
VAT returns in practice
Under the VAT Law, a VAT return is due within 30 days after the end of the tax period. Returns are filed through the Oman Tax Authority's e-services portal.
Most errors in a return trace back to the documents: an invoice with the wrong treatment, a credit note that never reached the ledger, or a purchase invoice recorded twice. A disciplined review — one person prepares, another checks and approves — catches these before the return is filed.
Where Invoice And Tax fits
Invoice And Tax builds a tax ledger from your sales and purchase documents and helps you prepare and review your VAT return figures with maker/checker approval: open the period, calculate, check completeness, submit for approval, approve. Filing the return itself remains with you through the OTA's portal. See VAT compliance for details.
From documents to return figures
VAT questions
When did VAT start in Oman?
On 16 April 2021, 180 days after the VAT Law (Royal Decree 121/2020) was published.
What is the standard VAT rate?
5% of the taxable value.
When is a VAT return due?
Within 30 days after the end of the tax period.
Does Invoice And Tax file my VAT return?
No. It helps you prepare and review your VAT return figures with maker/checker approval. You file the return through the OTA's portal.