Skip to content
Yusrin app logo - simple compliant-ready e-invoicing for omani companies

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.

Last verified:

The rate is fixed at 5%, the standard rate in Oman. Some supplies are zero-rated or exempt; the difference is explained below.

Net1,500.500
VAT at 5%75.025
Total1,575.525

The total in Arabic words

فقط ألف وخمسمئة وخمسة وسبعون ريالاً عماني وخمسمئة وخمس وعشرون بيسة لا غير

Open the amount-in-words tool

This tool runs entirely in your browser. Nothing you type is sent anywhere, stored, or logged.

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.

Three decimal places, and why
OMRIn baisa
0.500500
0.05050
0.0055

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.

Questions

How do I take 5% VAT out of a total in Oman?
Multiply the total by 100 and divide by 105 to get the net amount, then subtract the net from the total to get the VAT. A total of OMR 105.525 contains OMR 100.500 net and OMR 5.025 VAT. Deriving the VAT by subtraction rather than computing it separately is what makes the three figures add up exactly.
What is the VAT rate in Oman?
The standard rate of VAT in Oman is 5%, introduced by Royal Decree 121/2020 and in force since 16 April 2021. Some supplies are zero-rated and some are exempt, which are different things: a zero-rated supply is taxable at 0% and allows input tax recovery, while an exempt supply does not.
Why does the Omani rial have three decimal places?
One Omani rial is divided into 1,000 baisa, so amounts are written to three decimal places. VAT on a tax invoice is stated in Omani rials to three decimals, and every place is a real unit: 0.5 is five hundred baisa, 0.05 is fifty baisa, and 0.005 is five baisa.
When is VAT registration mandatory in Oman?
VAT registration is mandatory once annual supplies reach OMR 38,500, assessed on a rolling twelve months looking back and forward. Voluntary registration is available from OMR 19,250 in annual supplies or expenses.
Can I issue a simplified tax invoice for a small sale?
Only with prior approval from the Oman Tax Authority. A simplified tax invoice is available where the supply value excluding tax is under OMR 500, but the value alone does not qualify a supply automatically. The approval has to be in place first.
Does this calculator send my figures anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted, stored or logged, and the page loads no analytics or third-party script.

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.