Aqid ERPCalculating 5% VAT
To add VAT, multiply the net price by 0.05. To find the VAT inside a VAT-inclusive total, multiply it by 5 and divide by 105. The Omani rial has three decimals (baisa), so round to three places.
| Net price | OMR 400.000 |
|---|---|
| VAT at 5% | OMR 20.000 |
| Total including VAT | OMR 420.000 |
| VAT inside OMR 420.000 (× 5 ÷ 105) | OMR 20.000 |
Who registers
Registration is mandatory when taxable supplies over the last 12 months, or expected over the next 12, exceed OMR 38,500 (article 55 of the VAT Law), and voluntary from OMR 19,250 (article 61).
Returns and payment
Returns are filed quarterly, and the return and payment are due within 30 days of the end of each quarter. A full tax invoice carries the words "Tax Invoice", a sequential number and the VAT in rials, and is issued within 15 days of the supply.
Zero-rated and exempt
- Zero-rated, for example: the basic food items on the Tax Authority's list, medicines and medical equipment cleared by the Ministry of Health, exports, and international transport.
- Exempt, for example: financial services (those charged for by a fee carry 5%), licensed education, undeveloped land, the resale of residential property, and the rent of residential property.
How Aqid ERP helps
An Omani company in Aqid ERP issues bilingual tax invoices in OMR to three decimals and fills the Tax Authority return from its ledger. Payroll handles Social Protection Fund contributions for Omani staff.