The standard rate of 5% VAT will apply on goods and services supplied in Oman, subject to specific exemptions and zero ratings prescribed under Oman VAT law.

There is a mandatory registration requirement if the total value of annual supplies exceeds or is expected to exceed OMR 38,500.

Exempt supplies are not subject to VAT, and the input tax in relation to exempt supplies cannot be recovered. Examples of exempt supplies include certain financial services, local passenger transportation services, education services, renting of residential property, etc.

Zero-rated supplies are subject to VAT at 0%, and the supplier can avail input VAT credit in respect of goods / services used for making zero-rated supplies. Examples of zero-rated supplies include export of goods and services outside Oman, international transportation services, basic food items, etc.