Oman / VAT in Odoo
VAT in Odoo
Oman VAT is 5%. This page shows the taxes in Odoo, how they reach the return boxes, how zero-rating works, and what to do each quarter.
Taxes in Odoo
VAT in Oman is 5%. The boxes are those of the Tax Authority VAT return (guide of June 2021).
| Tax | Rate | Used for | Return box |
|---|---|---|---|
| 5% (sales) | 5% | Standard-rated sales | 1a |
| 0% (sales) | 0% | Zero-rated sales | 1b |
| 0% EXT (sales) | 0% | Exempt sales | 1c |
| 0% EX (sales) | 0% | Exports | 3a |
| 5% (purchases) | 5% | Input VAT on local purchases | Input VAT |
| 5% not deductible | 5% | VAT that cannot be deducted. It stays in the cost | - |
| 0%, 0% EXT, 0% EX, 0% EX EXT (purchases) | 0% | Purchases with no VAT charged | - |
| 5% EX ONLY B | 0% | Base value of imported goods | 4b, 6b |
| 5% EX ONLY | 100% | Import VAT paid to customs, typed in. Goes to 200901 | 6b (VAT) |
| 5% EX P | 5% | Postponed import payment (needs Tax Authority approval and a guarantee). The tax exists but has no screen | 4a |
| 5% RCM | 5% | Reverse charge on a foreign supplier without a purchase order | 2b, 6a |
| Withholding tax 10% | -10% | 10% withheld on payments to non-residents | - |
The taxes are in Invoicing > Configuration > Accounting > Taxes. Do not change them. A change alters the return boxes.
Fiscal positions
Invoicing > Configuration > Accounting > Fiscal Positions holds five positions: Oman, Non-Oman, Import - postponed payment, Non-resident supplier - reverse charge and GCC supplier or customer (purchases reverse charged). A supplier is treated as resident or non-resident from the country on the supplier record (see Purchasing). GCC purchases are not separated from other imports.
Zero-rated goods
From 1 October 2026, food, medicines and veterinary goods on the Tax Authority lists are zero-rated. The lists are by customs tariff code (Decision 225/2026 food, 224/2026 medicines and medical equipment, 223/2026 veterinary). Odoo applies this on customer invoices.
- Open Invoicing > Configuration > Zero-rated tariff codes. Each row has a tariff code or prefix, the decision, a note and an Active box. The list is loaded with the codes of the three decisions.
- Each product carries a Customs tariff code (HS). The customer can enter it in the portal Inventory (HS code column) or you can enter it on the product in Odoo.
- When a customer invoice or credit note is created in Odoo as a draft, a product whose code starts with a listed code gets the tax 0% instead of 5%. The sale then goes to box 1b.
- A product with no tariff code stays at 5%.
- A posted invoice is never changed.
- Vendor bills are not changed.
- Invoices that the customer uploaded as PDF keep the VAT printed on the document.
To follow a new decision, add the new codes, or untick Active on a code that no longer applies. A code can be listed only once. Decision 89/2022 (food) is not named in the repeal by Decision 225/2026. Confirm with the Tax Authority whether it still applies.
Special cases
- Foreign supplier, no purchase order: reverse charge 5% (tax 5% RCM). The VAT you owe and the VAT you deduct are booked together; the net effect is nil.
- Imported goods with a purchase order: import VAT is paid to customs. Enter the declaration number and the VAT paid in Purchasing, Landed costs.
- Payments to non-residents for royalties, software or management fees can carry 10% withholding tax. In the portal Reports, Statutory Filings, tick the foreign suppliers concerned. The tax is due by the 14th of the next month.
- Excise goods (tobacco, pork products, alcohol, energy drinks, sweetened drinks) go in the product categories named for them. The excise report is an estimate only.
The quarterly VAT return
- Clear the quarter: no drafts, bank lines reconciled (see Daily and Month-End Routine).
- Open portal Reports > Statutory Filings, choose the quarter dates and read the boxes: 1a, 1b, 1c, 2b, 3a, 4a, 4b, 6a, 6b with base and VAT, then VAT due, input VAT credit and net payable.
- Open Input VAT Check (portal Reports, tax reports). It lists posted bills whose input VAT may not qualify: no supplier VAT number, no original document, or a type of cost that may be blocked.
- Type boxes 5b, 6c and 6d (adjustments and VAT on fixed assets) on the same page. Take the figures from Capital Asset VAT Adjustment and VAT Refund and Partial Exemption.
- Key the figures into the Tax Authority portal (tms.taxoman.gov.om) and pay within 30 days after the quarter ends.
- Set the tax lock date to the end of the quarter.
Nothing is submitted for you. The VAT return layout is calculated from the tax tags and has not yet been checked against a filed quarter. Compare the first return with your own working before you rely on it.
Partial exemption and fixed assets
- A business with taxable and exempt supplies deducts only part of its input VAT. The provisional ratio is taxable supplies divided by taxable plus exempt supplies (Reg Art 59). The annual adjustment (Art 60) is calculated to three decimals on the year's totals and entered in the first return after the year end.
- Input VAT on a fixed asset is adjusted over 5 years (10 for land and buildings): total input VAT times (initial deduction % minus the year's deduction %) divided by the adjustment period (Reg Arts 68-69). The first adjustment year and the formula are not yet confirmed against a Tax Authority example. See Fixed Assets.
- A refund claim for excess input VAT above OMR 100 can be made with the return. Below that, with the first return after the year end (Reg Art 186).
Invoices and records
A tax invoice must show, among other things: the words tax invoice, the issue and supply dates, a sequential number, the names, addresses and tax numbers of both parties, the description and quantity, the rate, the taxable value and the tax. It must be issued within 15 days of the supply. A simplified invoice is allowed below OMR 500. Keep books and invoices for 10 years (15 for real estate) and give an Arabic version on request. Details and sources are in Oman Rules Reference.