Quick answer: Net VAT = output VAT on your sales − input VAT on your purchases. With 25,000.000 OMR of sales, 1,000.000 OMR of returns and 12,000.000 OMR of purchases before VAT, you owe 1,200.000 OMR − 600.000 OMR = 600.000 OMR.
How it's calculated
Pick VAT exclusive if your figures are before VAT, or VAT inclusive if they already contain it. Most accounting reports show sales before VAT, but till receipts and card statements usually include it.
Enter the period's sales taxed at 5%. If you gave customers refunds or credit notes, turn on Include returns and enter them too. The VAT on what's left is your output VAT.
Then enter purchases you hold a valid tax invoice for, with any returns to suppliers under their own switch. The VAT on those is your input VAT. If the net comes out negative, you have a credit rather than a bill.
To check a single price instead of a whole period, use the Oman VAT calculator.
Worked examples
- Sales 25,000.000 OMR, returns 1,000.000 OMR, purchases 12,000.000 OMR, all before VAT: 1,200.000 − 600.000 = 600.000
- The same sales and purchases entered including 5% VAT: 1,250.000 − 600.000 = 650.000
- Sales 12,000.000 OMR and purchases 25,000.000 OMR (a heavy buying month): 600.000 − 1,250.000 = -650.000 (credit)
What goes in each box
Output VAT is the 5% you charged customers. Zero-rated sales, such as exports outside the GCC, and exempt sales go on the return too, but they carry no VAT, so they don't change the amount you owe and you can leave them out here.
Input VAT is the 5% you paid suppliers on business costs. You can only claim it with a proper tax invoice, and not on everything: VAT on entertaining clients, on cars available for private use and on personal spending usually can't be recovered.
Filing and paying in Oman
Returns are usually quarterly and are due within 30 days after the period ends, with the payment due by the same date.
Late returns and late payments both carry penalties under the VAT law, so file on time even when nothing is due.
Frequently asked questions
What's the difference between output VAT and input VAT?
Output VAT is what you charge on your sales. Input VAT is what you pay on your purchases. The return is simply output minus input: you pay the difference, or claim it back if input is bigger.
What happens if my input VAT is more than my output VAT?
You have a credit. You can ask the Tax Authority for a refund or carry it forward to reduce the next return. Refund claims are often checked before they're paid, so keep your invoices handy.
My sales figure already includes VAT. What do I do?
Switch to "VAT inclusive". The calculator then takes 5/105 of each amount as VAT instead of adding 5% on top.
How do returns and credit notes change my VAT?
A refund to a customer reduces your output VAT for the period it's issued in. A credit note from a supplier reduces your input VAT. Both are entered as positive amounts here and subtracted for you.
Do I include zero-rated and exempt sales?
Not in this calculator. They're reported on the return but carry no VAT. One catch: if you make a lot of exempt sales, some of your input VAT may not be fully claimable, and that needs an apportionment your accountant can do.
Do I have to register for VAT in Oman?
Yes, once your supplies pass OMR 38,500 a year. From OMR 19,250 you can register voluntarily.
Why does the result have three decimals?
The Omani rial is split into 1,000 baisa, so VAT is worked out to three decimal places.
Are basic foods taxed at 5% in Oman?
No. A list of basic food items is zero-rated, along with things like most medicines and some medical equipment. Those sales don't belong in the standard-rated sales box here.