Navigating VAT in Oman

This guide provides an overview of VAT in Oman, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Oman.

Last Updated: March 2026
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2021

Oman introduced VAT in 2021, making it one of the newest adopters in the world.

Oman at a glance.

Standard rate

5% VAT

Digital services VAT

Yes, at 5%

Mandate e-invoicing

No

Currency

Omani Rial (OMR)

Zero-rated items

A broad range of food items (nearly 500), medicines, medical equipment, electric cars, and exported goods and services.

VAT format

OM followed by 11 digits

Fiscal representation

Optional

Reclaiming VAT in Oman.

Foreign businesses that incur VAT on eligible expenses in Oman may be able to reclaim it.

Who can reclaim?
Oman applies the rule of reciprocity. This means Oman allows VAT refunds for foreign businesses, but only if they are based in approved countries.
Eligible countries include:
Claimable expenses:
Entertainment
Non-reclaimable
Accommodation
5%
Food, drink & restaurant services
5%
Entertainment 1 2
Hiring means of transport
Non-reclaimable
Fuel
Non-reclaimable
Public Transport
5%
Taxis
5%
Entertainment 2 1
Admission to fairs & exhibitions
5%
Training courses & seminars
5%
Goods
5%
Inter-company charges
5%
Office expenses
5%
Marketing costs
5%
Professional fees & AP invoices
5%
Entertainment 4
e-invoicing in Oman.
Summary of the mandate in this country

B2G mandate in place

No

B2B mandate in place

No

B2C mandate in place

No

Obligation status: B2B e-Invoicing

From 1 August 2026

B2B e-Invoicing model

Peppol 5-Corner model

Name of exchange infrastructure

Under development

Format(s) used

Likely Peppol BIS

FAQs

No, original invoices are not required for an Oman VAT refund. As such, scans and photocopies may be submitted as part of an Oman VAT refund application.

Oman has two VAT refund submission dates, as follows:
30 June - for invoices incurred between 1 July and 31 December of the previous year
31 December - for invoices incurred between 1 January and 30 June of the current year

Oman VAT refunds claims must exceed OMR 100 for them to be processed.

Nearby countries.

Explore indirect tax information in these countries:

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