VAT calculator
Add or remove 5% Oman VAT
The standard rate of VAT in Oman is 5%, and VAT on a tax invoice is expressed in Omani rials to three decimal places. To add VAT, multiply the net amount by 5 and divide by 100. To take VAT out of a total that already includes it, multiply the total by 100 and divide by 105.
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The rate is fixed at 5%, the standard rate in Oman. Some supplies are zero-rated or exempt; the difference is explained below.
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The two calculations
Adding VAT: VAT equals the net amount multiplied by 5 and divided by 100. The total is the net amount plus the VAT.
Removing VAT: the net amount equals the total multiplied by 100 and divided by 105. The VAT is then the total minus the net, which is what keeps the three figures adding up exactly.
- A net amount of OMR 5.000 carries OMR 0.250 of VAT, giving a total of OMR 5.250.
- A total of OMR 105.525 contains OMR 100.500 of net value and OMR 5.025 of VAT.
Three decimal places, and why
The Omani rial is divided into 1,000 baisa, where the Saudi riyal and the UAE dirham are divided into 100. The third decimal place is real money: 0.005 is five baisa, not half a baisa, and rounding it away loses a unit a customer can see on their invoice.
VAT is rounded to the nearest baisa. This calculator handles one amount at a time. A multi-line invoice groups its lines by VAT rate and rounds once per rate group, which is what Yusrin does, so a total computed here can differ by a baisa from a total computed across several lines.
Zero-rated is not the same as exempt
A zero-rated supply is taxable at 0%. The supplier charges no VAT on it and can still recover the VAT they paid on their own costs.
An exempt supply is outside the tax. The supplier charges no VAT and cannot recover the VAT on costs attributable to it, so the tax becomes a cost of doing business rather than something passed on.
The difference matters when deciding whether to register and how much input tax is recoverable, which is why the two are worth telling apart before either appears on an invoice.
When registration becomes mandatory
VAT registration is mandatory once annual supplies reach OMR 38,500, and voluntary registration is available from OMR 19,250 in annual supplies or expenses.
Both are assessed on a rolling twelve months, looking back and looking forward, not on a calendar year. A business below the threshold cannot issue a VAT invoice simply because a customer asks for one.
Simplified tax invoices need approval first
A simplified tax invoice is available where the value of the supply excluding tax is under OMR 500, and it requires prior approval from the Oman Tax Authority.
The approval step is widely omitted online. No supply qualifies automatically on its value alone, and issuing a simplified invoice without approval leaves a document that does not meet the requirements.
Sources
Questions
How do I take 5% VAT out of a total in Oman?
What is the VAT rate in Oman?
Why does the Omani rial have three decimal places?
When is VAT registration mandatory in Oman?
Can I issue a simplified tax invoice for a small sale?
Does this calculator send my figures anywhere?
The other tools
Yusrin computes VAT the way the invoice has to show it
Omani rials to three decimal places, grouped by rate, with every field Article 144 requires already in place.