Oman VAT calculator

Net, VAT and total to three decimals, the way an Omani invoice is written.

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Sources cited
Last reviewed: September 2026

What do you want to work out?

Amount before VAT

OMR

The net amount as you write it on the invoice, before VAT is added.

VAT rate

5% since 16 April 2021, per the Oman Tax Authority. The rate is set by law and is not typed in.

Worked out in your browser: nothing is sent to a server

Total including VAT

1,050.000 OMR

5% VAT on 1,000.000 OMR

Breakdown

Amount before VAT	1,000.000 OMR
VAT amount	50.000 OMR
Total including VAT	1,050.000 OMR

Figures are rounded to the currency's smallest unit, and the total is built from the rounded amount and VAT, so the three invoice lines add up exactly.

How is VAT worked out in each direction?

VAT when adding = amount before VAT x 5%
Total = amount before VAT + VAT
Amount before VAT when extracting = total / 1.05
Rounded to three decimals, because the Omani rial is 1,000 baisa

Symbols

Amount before VAT: The net figure the tax is charged on. It is what you type in add mode, and what comes out in extract mode
Total: The amount with the VAT inside it. It is 105% of the net, which is why subtracting the rate from it does not work
Rate: 5% by law since 16 April 2021, not a field you fill in; it moves by legislation, not by a setting here

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What is the VAT on 1,000 OMR, and the net inside 1,050?

A Muscat supplier issues a 1,000 OMR pre-tax invoice for a standard-rated supply, then checks the sum in reverse from the total.

VAT: 1,000 x 5% = 50 OMR
Total: 1,000 + 50 = 1,050 OMR
In reverse: 1,050 / 1.05 = 1,000 OMR before VAT
Extracted VAT: 1,050 minus 1,000 = 50 OMR, the same answer

The invoice reads 1,000 OMR net, 50 OMR VAT and 1,050 OMR total. Subtracting 5% from the total instead of dividing would have shown a net of 997.500 OMR, an error of 2.500 OMR.

What carries the standard rate, and when must you register?

Add 5% to a pre-tax amount, or extract the VAT from a tax-inclusive total, at the rate in force in Oman since April 2021 and rounded to the baisa.

VAT in Oman is 5% on standard-rated supplies, in force from 16 April 2021, 180 days after Royal Decree 121/2020 was published. Oman was the fourth Gulf state to introduce VAT, and its rate has not moved since.

The two directions are not one sum run backwards. Adding VAT multiplies by 5%; taking it out of a tax-inclusive figure divides by 1.05, and the common error is to subtract 5% from the total. On a 1,050 OMR invoice, subtracting gives a net of 997.500 OMR rather than 1,000, which is 2.500 OMR short.

The Omani rial divides into 1,000 baisa rather than 100, so an invoice is written to three decimal places and this calculator rounds to the baisa. Registration is mandatory once taxable supplies pass 38,500 OMR, and voluntary from 19,250 OMR. The test is a rolling twelve months rather than a calendar year: the current month plus the previous eleven, or the current month plus the next eleven.

VAT when adding = amount before VAT x 5%
Amount before VAT when extracting = total / 1.05
Rounded to three decimals, because the Omani rial is 1,000 baisa
Mandatory registration at 38,500 OMR, voluntary at 19,250 OMR, over any rolling twelve months

Questions about VAT in Oman

What is the VAT rate in Oman?

The standard rate is 5%, in force since 16 April 2021, the date Royal Decree 121/2020 took effect 180 days after publication. The rate has not changed since.

How do I extract VAT from a tax-inclusive amount?

Divide the total by 1.05 to get the amount before VAT, then subtract that from the total to get the VAT. Subtracting 5% from the total is a different sum and comes out too low.

Why are the figures shown to three decimals?

Because the Omani rial divides into 1,000 baisa, so an invoice is written to three places rather than two. Rounding to two drops part of the tax on every line.

When do I have to register for VAT?

Registration is mandatory once taxable supplies exceed 38,500 OMR, and voluntary above 19,250 OMR. Both are tested over a rolling twelve months, looking back over the current month and the previous eleven or forward over the current month and the next eleven, so the year is not the calendar one. Voluntary registration can also be reached on expenses rather than supplies. Check your own position with the Oman Tax Authority.

Is everything taxed at 5%?

No. Some supplies are zero-rated, such as exports and a list of basic foodstuffs and medicines, and some are exempt, such as residential leases and certain financial services.

Is the rate the same across the Gulf?

No. Oman and the UAE are at 5%, Bahrain at 10% and Saudi Arabia at 15%. The unified GCC agreement set the framework, but each state sets its own rate and start date.

Sources

Reviewed September 2026

Statutory articles this calculator applies

Oman VAT Law (RD 121/2020) Art. 36
Oman Tax Authority VAT Taxpayer Guide; GCC Unified VAT Agreement Arts. 50(2), 51(3)

Oman Labour Law: Royal Decree No. 53/2023, which replaced Royal Decree No. 35/2003