TaxSavvyOM

Excise and VAT together

Is VAT charged on top of excise?

The situation

Excise goods sold in Oman can carry both excise tax and 5 percent VAT.

The law

  • Oman Excise Tax Law (in force 15 June 2019): 100 percent on tobacco, pork, alcohol and energy drinks; 50 percent on carbonated and sweetened drinks
  • VAT Law, Royal Decree 121/2020: 5 percent VAT; mandatory registration above OMR 38,500, voluntary above OMR 19,250; quarterly returns due 30 days after the quarter

What it means for you

VAT at 5 percent is generally computed on a price that includes excise. A can priced OMR 1.000 before taxes with 100 percent excise becomes OMR 2.000, then VAT of OMR 0.100. Confirm the base rules.

What to do

  1. Compute excise.
  2. Compute VAT on the total.
  3. Show both on invoices.
  4. File both returns.

We can do this for youExcise tax registration and returns: OMR 200

Related