Step-by-Step VAT Registration in Oman
- Click calculate.
- Open the calculator on your device.
- Choose the calculation type
- Select the VAT rate.
Choosing VAT Rate (Default 5% or Custom):
Although the fixed rate of VAT in Oman is 5%, you can input a specific rate in the calculator. This option comes in handy when you are comparing VAT rates.
Formula for VAT-Exclusive Price
- Total Price = Base Price × (1 + VAT Rate)
- For example:
- Base Price = 100 OMR
- VAT Rate = 5% (0.05)
- Total Price = 100 × (1 + 0.05) = 105 OMR
Formula for VAT-Inclusive Price
- Base Price = Total Price ÷ (1 + VAT Rate)
- For example:
- Total Price = 105 OMR
- VAT Rate = 5% (0.05)
- Base Price = 105 ÷ 1.05 = 100 OMR
- VAT Rate = 5% (0.05)
- VAT Amount = 105 – 100 = 5 OMR
Industries & VAT Section
At present, the industries section is heavy on text. To make it scannable and more interesting, make it a comparison table:
| Industry | VAT Rate | Exemptions / Notes |
|---|---|---|
| Retail & Consumer Goods | 5% Standard | Some food items may be exempt or zero-rated |
| Hospitality & Tourism | 5% | Hotels, restaurants, tourist packages |
| Healthcare | Exempt/5% | Basic healthcare exempt, cosmetic/luxury taxed |
| Education | Exempt | Private training centres may be taxable |
| Transport | Exempt/5% | Public exempt, private/logistics taxed |
Industries & VAT in Oman (2025 Guide)
Hospitality & Tourism
- The hotels, resorts, restaurants, and cafes tend to impose VAT of 5% on the room bookings and dining.
- Companies within this industry must show inclusive prices.
Healthcare
- Basic medical facilities like hospitals, clinics, and pharmacies can be exempted.
- Nonetheless, cosmetic surgery, fitness facilities, and posh health are usually subject to VAT.
Retail & Consumer Goods
- Most of the retail items, such as electronic goods, clothing, and furniture, are subject to 5% VAT.
- The items that are the main necessities of people, like food, can either be offered as an exception.
Transport
- VAT is usually not charged on public transport of passengers (such as buses and taxis).
- The standard VAT of 5% is normally applied to the private transport services.
Oman Gratuity Calculation Formula
The calculation formula is straightforward but depends on your length of service:
- For the first 3 years → 15 days’ basic salary per year
- After 3 years → 30 days’ basic salary per year
- Cap → Maximum of 2 years’ basic salary
Example Calculation
- Basic Salary: 1,000 OMR
- Years of Service: 5 years
📌 Breakdown:
Total gratuity = 105 days’ salary = ~3.5 months’ salary = 3,500 OMR
- First 3 years = 15 days × 3 = 45 days’ salary
- Next 2 years = 30 days × 2 = 60 days’ salary