There are two VAT rates applicable within Oman

• The standard rate of VAT – 5%; and
• The zero rate of VAT – 0%.

In addition, certain category of supplies will be “exempt” from VAT.

Yes. Oman Arab Bank, being a VAT registered business, is required to collect VAT on its taxable supplies in Sultanate of Oman.

Exceptions to VAT are only by law, and the Tax Authority publishes these. There is a possibility for business owners to claim back their VAT payments, provided they have registered for VAT and meet the requirements. For further details, please visit https://tms.taxoman.gov.om/portal/web/taxportal/vat-tax

Yes, once you receive your Tax registration number (VATIN) you are required to send it to us. This is important for us to update your account details and ensure that your VATIN is reflected in your monthly invoice. The VAT registration number can be shared with your dedicated relationship manager and or your branch.

No, VAT does not apply on Credit card transactions, however will apply in the case of annual fees/late payment fee/cash withdrawal and other service charges as applicable.

Yes. Oman Arab Bank, a VAT registered business, is required to collect VAT on its taxable supplies of goods and services made in Oman. The collected VAT will be remitted to Oman Tax Authority (OTA).

A supply of financial products/services by Oman Arab Bank conducted in return for an explicit income where the payment of the consideration is as a fee, commission or commercial deduction shall be subject to VAT. However, supplies of other financial services if remunerated by way of an implicit margin (such as interest) shall not be subject to VAT as these qualify to be treated as exempt supplies.

Where services are supplied to a recipient that does not have a place of residence in Oman, and who is outside the state at the time services are performed, these supplies may be zero-rated.

The repayment of the principal amount borrowed from the bank will not constitute consideration for a supply and hence will fall outside the scope of VAT. This means that VAT would not be payable in addition to the principal amount borrowed.

If additional services are rendered as part of the transaction (for example administration fees) these may be subject to VAT.

Any deposits into or withdrawals from current, deposit or savings accounts shall not be subject to VAT. However, if there a service charge or fee imposed by the Bank, then these services shall subject to VAT.