VAT in Oman is one of the most awaited financial updates in the GCC region. According to the Common GCC VAT agreement, Oman will be the fourth country to implement VAT aligned with the GCC VAT Framework with effect from April 2021 at a standard rate of 5%, with limited zero-ratings offering highest number of exemptions in the region.


On Monday 12 October 2020, His Majesty, the Sultan of Oman, Sultan Haitham bin Tariq bin Taimur, issued Royal Decree No.121/2020 in relation to the implementation of VAT in Oman. The official gazette on VAT is law is expected to be released in November 2020.

What is VAT?

Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of supply. It is a form of indirect tax which is adopted by more 180 countries in the globe.

It is expected that VAT in Oman will be in effect from 16th of April 2021. The rate of tax in Oman will be 5% in line with the GCC VAT agreement and there are categories of goods and services classified as Zero-rated and Exempted as well.

Subject to the conditions mentioned in the Executive Regulations, the following supplies are zero-rated as per the Oman VAT Law:

0% / Zero Rate As per Oman Vat Law

  • Supply of certain food products specified by a decision from the Chairman
  • Supply of specified medicines and medical equipment.
  • Supply of investment gold, silver, and platinum.
  • Supplies of international or Intra GCC transport of goods or passengers, and supply of services in connection with this transport.
  • Supply of air, sea, and land means of transport that is designated for the transportation of passengers and goods for commercial purposes and the supply of related goods and services.
  • Supply of rescue planes, and rescue and assistance boats.
  • Supply of oil, oil derivatives, and natural gas.
  • Supplies made outside GCC countries in specified cases, subject to certain conditions.
  • Supply of goods and services that are exempt from VAT in Oman and that are supplied to the territory outside of the GCC.

Exempted As per Oman Vat Law

  • Financial services
  • Healthcare services and related goods and services.
  • Educational services and related goods and services.
  • Undeveloped land (bare land).
  • Local passenger transport.
  • Rental of properties for residential purposes.
  • Resale of residential properties.

What businesses should expect with the introduction of VAT in Oman?

The introduction of VAT in Oman marks a significant economic reform in the region and is expected to make a boost the country’s revenue by 400 Million OMR per annum.

As a business owner/Manager in the Sultanate of Oman, it is imperative for you to understand the law and develop a tax system that is in compliance with VAT Law in Oman. A foolproof tax system shall be designed to understand the nature of business you are in and identify the tax points to determine the taxability of transactions.

Done fast, done right

VAT Consultancy Services in Oman

VAT Consultancy Service in Oman - Emirates CA offers a complete range of VAT Consultancy Services that can help in the proper implementation of Oman VAT Regulations in your Business.


Call for Consultation
Mr. Manu Nair I Partner & CEO
Mob: +971 50 2828727


How can we help with VAT in Oman?

With our abundant experience in implementing VAT across a wide array of clientele in UAE, Bahrain, and KSA, we can support you in developing a sustainable tax system in compliance with the regulations. Our services include:

VAT Registration Service in Oman

The law stipulates the VAT registration into two categories 1. Mandatory Registration and 2. Voluntary Registration

A taxable person who has a turnover of OMR 38,500 in the current month plus 11 months preceding the current months or is expected to reach such turnover in the current month plus 11 months succeeding the current months shall mandatorily register for VAT in Oman.

Further, any non-resident performing taxable supplies in the Sultanate is bound to register for VAT in Oman irrespective of their turnover.

A taxable person who has a turnover of OMR 19,250 in the current month plus 11 months preceding the current months or is expected to reach such turnover in the current month plus 11 months succeeding the current months can voluntarily register for VAT in Oman.


VAT Implementation Service in Oman

VAT Implementation service is a holistic approach to developing a tax system for your company. Our tax experts will understand every aspect of your business in detail to determine the tax points involved in every transaction.

As a business operating in a tax regime, it shall be your priority to be in compliance with the law of the land. And it is often challenging to understand a new law and its implications in your business. That is where our service becomes critical for you.

With our experience in implementing VAT in three GCC counties, we understand the challenges you may face and have successfully devised solutions to overcome them

Looking for a VAT Consultant in Oman?

To ensure clients' progress financially and socially. 

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