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How to Calculate Import Tax in Oman?

How to Calculate Import Tax in Oman?

Written by: Shuja Ahmad
Oman Customs & Tax Specialist

Last Updated: February, 2026
Based on Oman Customs Authority and Oman Tax Authority regulations

Quick Answer: Import tax in Oman is calculated using CIF value (Cost + Insurance + Freight), plus customs duty (typically 5%), plus 5% VAT, and excise tax if applicable. Total import tax = Customs duty + VAT + Excise (for restricted goods).

This guide provides the complete calculation formula, rates, and procedures for importing goods into Oman in 2026.

Import Tax Calculation Formula (Quick Reference)

Step-by-Step Calculation:

  1. Customs Value = Cost of Goods + Insurance + Freight (CIF)
  2. Customs Duty = Customs Value × Duty Rate (usually 5%)
  3. VAT = (Customs Value + Customs Duty) × 5%
  4. Excise Tax = Customs Value × Excise Rate (if applicable)
  5. Total Import Tax = Customs Duty + VAT + Excise Tax

Import Tax Components in Oman 2026

Tax ComponentRateApplied OnAuthority
Customs Duty0-5% (standard 5%)CIF ValueOman Customs Authority
VAT5%CIF + Customs DutyOman Tax Authority (OTA)
Excise Tax50%-100%Product-specificOman Tax Authority

Regulated by:

  • Royal Oman Police (ROP) – Customs Department
  • Oman Customs Authority (customs.gov.om)
  • Oman Tax Authority for VAT compliance
  • GCC Common Customs Law for tariff classification

What is Import Tax in Oman?

Import tax refers to the customs duties, VAT, and excise taxes levied on goods entering Oman. The Oman Customs Authority (under Royal Oman Police) administers customs duties, while the Oman Tax Authority (OTA) oversees VAT collection on imports.

Purpose:

  • Regulate import flow
  • Protect local industries
  • Generate government revenue
  • Ensure product safety compliance

Legal Framework:

  • GCC Common Customs Law
  • Oman Customs Tariff based on Harmonized System (HS) codes
  • VAT Law (Royal Decree 121/2020)
  • Excise Tax Law

Types of Import Taxes in Oman

1. Customs Duty

Standard Rate: 5% on most goods

Exemptions: 0% on essential items, pharmaceuticals, and educational materials

Higher Rates: Luxury goods, vehicles (varies by category)

Determination: Based on HS code (Harmonized System) classification

Oman Customs Authority maintains an official tariff schedule at customs.gov.om

2. Value Added Tax (VAT)

Rate: 5% (introduced April 2021)

Application: Most imported goods and services

Exemptions: Financial services, residential property, certain healthcare/education

Administered by: Oman Tax Authority (OTA)

Registration: Required if annual turnover exceeds OMR 38,500

3. Excise Tax

Applicable Products:

  • Tobacco products: 100%
  • Energy drinks: 100%
  • Carbonated drinks: 50%
  • Sweetened beverages: 50%

Calculated on: Retail price or customs value (whichever is higher)

How to Calculate Import Duty in Oman (Step-by-Step)

Step 1: Determine Customs Value (CIF)

CIF = Cost + Insurance + Freight

Components: Cost (invoice price FOB), Insurance (marine/cargo insurance), Freight (shipping charges to Oman port)

Example: Goods OMR 10,000 + Insurance OMR 200 + Freight OMR 300 = CIF OMR 10,500

Oman Customs Authority requires: Commercial invoice, Bill of lading/airway bill, Insurance certificate, Packing list.

Step 2: Verify HS Code and Duty Rate

HS Code (Harmonized System): 6-10 digit product classification code, determines applicable customs duty rate, must be declared on customs declaration.

Find Your HS Code: Visit the Oman Customs Tariff system, search product description, verify classification, and confirm duty rate.

Common HS Code Duty Rates:

  • Electronics (8471-8542): 0-5%
  • Textiles (5000-6300): 5%
  • Machinery (8400-8500): 0-5%
  • Vehicles (8700-8800): 5-15%
  • Food items (0100-2400): 0-5%
  • Pharmaceuticals (3000-3006): 0% (exempt)

Incorrect Classification: Wrong duty calculation, customs delays, penalties up to 25% of the duty value. Verify with the Oman Customs Authority HS code lookup system.

Step 3: Calculate Customs Duty

Formula: Customs Duty = CIF Value × Customs Duty Rate

Example (5% standard): CIF OMR 10,500 × 5% = OMR 525

Exemptions: GCC origin (0%), Free Trade Agreement countries, Re-export goods, Diplomatic shipments

Step 4: Calculate VAT on Imports

Formula: VAT = (CIF Value + Customs Duty) × 5%

Example: (OMR 10,500 + OMR 525) × 5% = OMR 551.25

VAT Registration: Mandatory if annual imports exceed OMR 38,500. Register with the Oman Tax Authority (OTA), file monthly/quarterly returns, and input VAT recoverable if registered.

Exempted: Re-export goods (with proof), Temporary imports (ATA Carnet), Personal effects (within limits)

Step 5: Add Excise Tax (If Applicable)

Excise Products: Tobacco 100%, Energy drinks 100%, Carbonated drinks 50%, Sweetened beverages 50%

Formula: Excise Tax = CIF Value × Excise Rate

Example (Energy Drinks): OMR 1,000 × 100% = OMR 1,000. Excise calculated BEFORE VAT, then included in VAT base.

Step 6: Calculate Total Import Tax

Formula: Total = Customs Duty + VAT + Excise (if applicable)

Example (Standard Goods): OMR 525 + OMR 551.25 = OMR 1,076.25

Example (Energy Drinks): Duty OMR 50 + Excise OMR 1,000 + VAT OMR 102.50 (on OMR 2,050 base) = OMR 1,152.50

Oman Customs Duty Calculator Example

Example 1: Electronics Import

Scenario: Importing smartphones

Details:

  • Cost of Goods (FOB): OMR 20,000
  • Insurance: OMR 400
  • Freight: OMR 600
  • HS Code: 8517.12 (Smartphones)
  • Customs Duty: 5%
  • VAT: 5%

Calculation:

  1. CIF Value = OMR 20,000 + OMR 400 + OMR 600 = OMR 21,000
  2. Customs Duty = OMR 21,000 × 5% = OMR 1,050
  3. VAT Base = OMR 21,000 + OMR 1,050 = OMR 22,050
  4. VAT = OMR 22,050 × 5% = OMR 1,102.50
  5. Total Import Tax = OMR 1,050 + OMR 1,102.50 = OMR 2,152.50

Example 2: Tobacco Import (With Excise)

Scenario: Cigarettes import – CIF OMR 5,000, HS Code 2402.20, Customs Duty 5%, Excise 100%, VAT 5%

Calculation:

  1. CIF: OMR 5,000
  2. Customs Duty: OMR 5,000 × 5% = OMR 250
  3. Excise Tax: OMR 5,000 × 100% = OMR 5,000
  4. VAT Base: OMR 5,000 + OMR 250 + OMR 5,000 = OMR 10,250
  5. VAT: OMR 10,250 × 5% = OMR 512.50
  6. Total: OMR 5,762.50

Import Tax Exemptions and Reductions

GCC Common Customs Law: Goods from GCC countries (Saudi Arabia, UAE, Kuwait, Qatar, Bahrain) – 0% customs duty with a valid Certificate of Origin, VAT still applies (5%)

Free Trade Agreements: USA-Oman FTA, Singapore-Oman FTA, EFTA-GCC FTA – Duty 0-5% depending on product, requires a valid Certificate of Origin.

Temporary Imports (ATA Carnet): Commercial samples, professional equipment, exhibition goods – Duty/VAT suspended for up to 12 months, requires an ATA Carnet document and a return guarantee

Re-Export Exemptions: Customs duty refundable if re-exported within 2 years, VAT not charged with documented re-export

Oman Import Duty on Specific Products

Vehicles: New/used cars 5%, motorcycles 5%, electric vehicles 0% (government incentive). Additional: Registration OMR 100-500, ROP inspection OMR 20-50

Food Items: Basic food (rice, flour, sugar, tea, fresh produce) 0% duty. Processed food (canned goods, snacks) 5% duty

Pharmaceuticals: Medicines 0% duty (exempt), medical equipment 0-5%. Requires Ministry of Health (MOH) approval and an import license

Common Mistakes When Calculating Import Tax

  1. Wrong HS Code: Incorrect duty rate, penalties. Solution: Verify with the Oman Customs Tariff system
  2. Incomplete CIF: Using FOB instead of CIF. Solution: Always include Insurance + Freight
  3. Missing Excise: Forgetting the excise on tobacco, energy drinks, and carbonated drinks. Solution: Check the excise tax list
  4. Not Claiming FTA: Paying full duty when FTA applies. Solution: Obtain Certificate of Origin
  5. VAT Error: Calculating VAT on CIF only (without duty). Correct: VAT on (CIF + Customs Duty + Excise)
  6. Missing Documents: Incomplete paperwork causes delays. Required: Commercial invoice, packing list, BoL, insurance, Certificate of Origin

Import Customs Clearance Process

Steps: (1) Pre-Shipment: Obtain import license, register for VAT, classify goods (HS code). (2) Arrival: Submit customs declaration (Bayan system), upload documents, pay customs duty/VAT/excise. (3) Inspection: ROP Customs physical inspection (if selected), document verification, HS code confirmation. (4) Payment: Calculate total tax, pay via approved bank. (5) Release: Customs clearance approval, collect goods from the port/airport.

Timeline: 1-5 days, depending on inspection requirements

Required Documents: Commercial invoice, packing list, Bill of Lading, insurance certificate, Certificate of Origin (if applicable)

HS Code Oman Classification

Harmonised System (HS) Code: International product classification system, 6-digit base code (universal), Oman adds 2-4 digits for detailed classification

Finding Your HS Code: Visit customs.gov.om Oman Customs Tariff System, search by product name, verify the description matches, confirm the 6-10-digit code and duty rate.

Main Categories: Ch 1-24 Animal/vegetable, Ch 25-27 Minerals, Ch 28-38 Chemicals, Ch 39-40 Plastics/rubber, Ch 44-49 Wood/paper, Ch 50-63 Textiles, Ch 64-67 Footwear, Ch 68-71 Stone/glass, Ch 72-83 Metals, Ch 84-85 Machinery/electrical, Ch 86-89 Vehicles, Ch 90-97 Instruments

Incorrect Classification Penalties: Fine 5-25% of duty value, goods seizure, import license suspension

Verification: Cross-check with customs agent, confirm with Oman Customs Authority, use a professional customs broker if uncertain.

Custom Duty Oman: Authority Contact

Oman Customs (Royal Oman Police): customs.gov.om, +968 24 696 200, info@customs.gov.om

Oman Tax Authority (VAT): ota.gov.om, +968 24 763 333, info@ota.gov.om

Main Clearance Offices: Muscat Airport, Sohar Port, Salalah Port, Duqm Port, Land borders

Frequently Asked Questions

How do I calculate import tax in Oman?

Import tax = Customs duty + VAT + Excise (if applicable). Formula: (1) CIF value = Cost + Insurance + Freight, (2) Customs duty = CIF × 5% (typically), (3) VAT = (CIF + Duty) × 5%, (4) Total = Duty + VAT. Use Oman Customs Authority rates.

What is the customs duty rate in Oman?

Standard customs duty is 5% on most goods. Exemptions: 0% for GCC-origin goods, pharmaceuticals, and basic foods. Higher rates: Vehicles (5-15%), luxury items (varies). Verify rate using the HS code on the Oman Customs Tariff system.

Is VAT charged on imports in Oman?

Yes. 5% VAT applies to most imported goods. Calculated on (CIF value + Customs duty + Excise). VAT registration is required if annual imports exceed OMR 38,500. Administered by the Oman Tax Authority. Some exemptions apply.

What is the CIF value in customs calculation?

CIF = Cost + Insurance + Freight. Total landed cost of goods at Oman port. Oman Customs Authority uses CIF as the base for calculating customs duty. Different from FOB (Free On Board), which excludes Insurance and Freight.

How do I find my HS code for import in Oman?

Visit the Oman Customs Tariff system at customs.gov.om, search for the product name, verify that the description matches your goods, confirm the 6-10-digit code, and check the duty rate. An incorrect HS code can result in wrong duty calculation and penalties.

Are there import tax exemptions in Oman?

Yes. GCC origin goods: 0% customs duty (VAT still applies). Free Trade Agreement countries: reduced or zero duty. Pharmaceuticals, basic food, educational materials: 0% duty. Re-export goods: Duty refundable. Temporary imports (ATA Carnet): Duty suspended.

What is the excise tax on imports in Oman?

Excise tax applies to tobacco (100%), energy drinks (100%), carbonated drinks (50%), and sweetened beverages (50%). Calculated on CIF value or retail price (whichever is higher). Added to customs duty before VAT calculation. Administered by the Oman Tax Authority.

How long does customs clearance take in Oman?

1-5 days typically. Depends on inspection requirements, documentation completeness, and payment processing—express clearance: 24 hours for pre-registered importers with complete documents. Delays occur with incomplete documents, incorrect HS codes, or inspection holds.

Conclusion

Calculating import tax in Oman requires understanding three main components: customs duty (typically 5% of the CIF value), VAT (5% on the CIF value plus duty), and excise tax (if applicable to restricted products). The Oman Customs Authority and Oman Tax Authority regulate these taxes under the GCC Common Customs Law framework.

Accurate HS code classification is essential for accurate duty calculation and to avoid penalties. Businesses that regularly import goods should register for VAT with the Oman Tax Authority if their annual turnover exceeds OMR 38,500.

For companies establishing import-export operations in Oman, ensuring proper company registration, VAT compliance, and import licensing before commencing shipments is critical. MakeMyCompany business setup service providers specialize in the complete establishment of import-export businesses, including company formation, VAT registration, import licenses, and guidance on customs compliance, helping businesses navigate Oman’s regulatory requirements efficiently.

By following the calculation formulas and procedures outlined in this guide, importers can accurately determine total import tax obligations and maintain compliance with Royal Oman Police Customs Department and Oman Tax Authority regulations.

Legal Disclaimer:

This guide is informational based on February 2026 Oman Customs Authority tariff rates and Oman Tax Authority VAT regulations. Import duty rates, HS code classifications, and tax laws change periodically. Always verify current rates through the official Oman Customs portal (customs.gov.om) and Oman Tax Authority (ota.gov.om) before importing. For complex imports or high-value shipments, consult licensed customs brokers or MakeMyCompany professional import-export advisors for compliance guidance.

About the Author:

Shuja Ahmad specializes in Oman customs procedures, import tax calculation, HS code classification, and VAT compliance for import-export businesses. He assists companies establishing operations in Oman through MakeMyCompany business setup services, providing expert guidance on customs clearance, tax compliance, and regulatory requirements for successful import operations.

For current Oman Customs tariff rates, HS code verification, and official import procedures, visit customs.gov.om (Royal Oman Police Customs) or consult MakeMyCompanyauthorized import-export consultants.

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