{"id":12599,"date":"2026-06-17T10:39:00","date_gmt":"2026-06-17T06:39:00","guid":{"rendered":"https:\/\/omanet.om\/news\/business\/clarifying-1-2-vat-deduction-calculation\/"},"modified":"2026-06-17T15:05:48","modified_gmt":"2026-06-17T11:05:48","slug":"clarifying-1-2-vat-deduction-calculation","status":"publish","type":"post","link":"https:\/\/omanet.om\/ar\/news\/business\/clarifying-1-2-vat-deduction-calculation\/","title":{"rendered":"Clarification on 1.2% VAT Deduction: Impact and Implications for Businesses in Oman"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitv3sog-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitv3sog-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitv3sogw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitv3soga{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitv3soga:hover{border-color:#dc262688}\r\n.hitv3sogg1{position:absolute;inset:0;background:radial-gradient(ellipse at 50% 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0;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitv3sogs{font-size:13px;color:rgba(255,255,255,.6);line-height:1.4;margin-top:3px;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitv3sogbl{display:none;flex-direction:column;gap:5px;margin-top:9px;align-self:flex-start}\r\n.hitv3sogbi{display:flex;align-items:center;font-size:11px;color:rgba(255,255,255,.55);font-weight:500}\r\n.hitv3sogct{position:relative;z-index:1;flex-shrink:0;display:flex;flex-direction:column;align-items:center}\r\n.hitv3sogbtn{display:inline-flex;align-items:center;gap:6px;padding:10px 24px;background:#dc2626;background-image:linear-gradient(180deg,rgba(255,255,255,.12) 0%,transparent 100%);color:#fff;font-size:14px;font-weight:700;border-radius:8px;white-space:nowrap;box-shadow:0 0 20px #dc262666;border:none;cursor:pointer;font-family:inherit;transition:filter .15s,transform .15s}\r\n.hitv3sogbtn:hover{filter:brightness(1.15);transform:scale(1.04)}\r\n.hitv3sogbr{font-size:9px;color:rgba(255,255,255,.18);text-align:center;margin-top:5px;letter-spacing:.1em;text-transform:uppercase}\r\n\/* \u2500\u2500 Compact horizontal: 380\u2013599px (like 320\u00d7100) \u2500\u2500 *\/\r\n@container (min-width:380px) and (max-width:599px){\r\n  .hitv3soga{padding:12px 22px;gap:12px;min-height:100px}\r\n  .hitv3sogh{font-size:16px}\r\n  .hitv3sogs{display:none}\r\n  .hitv3sogbtn{padding:7px 16px;font-size:11px}\r\n}\r\n\/* \u2500\u2500 Mobile\/card: < 380px (like 300\u00d7250) \u2500\u2500 *\/\r\n@container (max-width:379px){\r\n  .hitv3soga{flex-direction:column;align-items:center;justify-content:space-between;min-height:260px;padding:22px 22px;gap:10px}\r\n  .hitv3sogc{align-items:center;text-align:center}\r\n  .hitv3sogh{font-size:22px;white-space:normal}\r\n  .hitv3sogs{font-size:11px;white-space:normal}\r\n  .hitv3sogbl{display:flex;align-self:center;text-align:left}\r\n  .hitv3sogbtn{width:100%;justify-content:center;padding:12px 20px}\r\n}\r\n\/* \u2500\u2500 Wide: >= 600px (leaderboard style) \u2500\u2500 *\/\r\n@container (min-width:600px){\r\n  .hitv3soga{min-height:90px}\r\n}\r\n<\/style><!-- HiT Land Banner \u2014 Container Query Responsive -->\r\n<div class=\"hitv3sogw\">\r\n<a class=\"hitv3soga\" href=\"https:\/\/hit.land\/services\/web-app-development\" target=\"_blank\" rel=\"noopener nofollow\" style=\"animation:hitv3sog-fadein 0.7s ease both;animation-delay:0s;\">\r\n  <div class=\"hitv3sogg1\" style=\"animation:hitv3sog-glow 3s ease-in-out infinite;\"><\/div>\r\n  <div class=\"hitv3sogg2\"><\/div>\r\n  <div class=\"hitv3soggl\" style=\"animation:hitv3sog-shimmer 3s ease-in-out infinite;\"><\/div>\r\n  \r\n  <div class=\"hitv3sogc\">\r\n    \r\n    <div style=\"display:inline-flex;align-self:flex-start;align-items:center;gap:6px;background:rgba(255,255,255,0.08);border:1px solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">\u0639\u0631\u0636 \u062d\u0635\u0631\u064a \u0641\u064a \u0633\u0644\u0637\u0646\u0629 \u0639\u0645\u0627\u0646<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">\u0645\u0648\u0627\u0642\u0639 \u0625\u0644\u0643\u062a\u0631\u0648\u0646\u064a\u0629 \u0644\u0640 <span style=\"color:#dc2626;\">\u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0639\u0645\u0627\u0646\u064a\u0629.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">\u0639\u0632\u0632 \u0639\u0644\u0627\u0645\u062a\u0643 \u0627\u0644\u062a\u062c\u0627\u0631\u064a\u0629 \u0628\u062d\u0644\u0648\u0644 \u0631\u0642\u0645\u064a\u0629 \u0645\u062e\u0635\u0635\u0629 \u0645\u0635\u0645\u0645\u0629 \u0644\u062a\u062d\u0642\u064a\u0642 \u0645\u0639\u062f\u0644\u0627\u062a \u062a\u062d\u0648\u064a\u0644 \u0639\u0627\u0644\u064a\u0629 \u0648\u0647\u064a\u0645\u0646\u0629 \u0639\u0644\u0649 \u0627\u0644\u0633\u0648\u0642.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u062a\u0635\u0627\u0645\u064a\u0645 \u0645\u062a\u062c\u0627\u0648\u0628\u0629 \u0645\u0635\u0645\u0645\u0629 \u0644\u0644\u0646\u0645\u0648<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u062a\u062d\u0645\u064a\u0644 \u0633\u0631\u064a\u0639 \u0645\u0639 \u0623\u062a\u0645\u062a\u0629 \u0630\u0643\u064a\u0629<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">\u0623\u0646\u0634\u0626 \u0645\u0648\u0642\u0639\u0643 \u0627\u0644\u0625\u0644\u0643\u062a\u0631\u0648\u0646\u064a \u0627\u0644\u0645\u062c\u0627\u0646\u064a <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">\u0636\u0631\u0628.\u0627\u0644\u0623\u0631\u0636<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p><\/p>\n<p><strong>\u0627\u0644\u0645\u0633\u0643\u0627\u062a \u0639\u0646\u0628 \u0637\u064a\u0628 \u0627\u0644\u0634\u0630\u0627:<\/strong> The Tax Authority has provided guidance on computing Value Added Tax (VAT) for invoices and contracts within the oil and gas sector as well as government entities. Notably, a <strong>1.2 percent deduction<\/strong> is applicable for training and employment support.<\/p>\n<p>In a public advisory, the Authority specified that VAT should be calculated on the total invoice amount prior to applying the 1.2 percent training and employment contribution. This clarification addresses common inquiries regarding whether VAT is computed before or after this deduction for invoices and contracts related to companies under the Oman Investment Authority and other government units.<\/p>\n<p>The Tax Authority emphasized that the <strong>1.2 percent contribution<\/strong> for training and employment does not constitute a discount on the base supply value. Instead, it is categorized as an independent deduction and does not influence the taxable amount.<\/p>\n<p>Accordingly, VAT is calculated first on the total invoice, followed by the application of the 1.2 percent deduction according to established guidelines. For instance, if an invoice totals <strong>100 \u0631\u064a\u0627\u0644 \u0639\u0645\u0627\u0646\u064a<\/strong>, VAT at the rate of <strong>5 \u0628\u0627\u0644\u0645\u0626\u0629<\/strong> would add <strong>\u0631\u0648 5<\/strong>, resulting in a total of <strong>RO 105<\/strong>. After deducting the 1.2 percent training and employment contribution of <strong>RO 1.2<\/strong>, the net payment to the supplier would be <strong>RO 103.8<\/strong>.<\/p>\n<p>To summarize, the Tax Authority outlined the procedure in three key steps: invoices should be issued for the full supply value, VAT is to be calculated on this total amount, and the 1.2 percent training and employment contribution is to be deducted separately, without affecting the taxable value.<\/p>\n<p>Taxpayers seeking additional information can reach the Tax Authority&#8217;s call center at <strong>1020<\/strong> or connect through its official social media channels.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 auto;box-sizing:border-box}\r\n.hitl8gaka{display:flex;flex-direction:row;align-items:center;justify-content:space-between;width:100%;box-sizing:border-box;text-decoration:none;color:#fff;font-family:-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,system-ui,sans-serif;position:relative;overflow:hidden;cursor:pointer;background:linear-gradient(135deg,#111118 0%,#080808 100%);border:1.5px solid rgba(255,255,255,0.08);border-radius:14px;gap:20px;padding:20px 40px;transition:border-color .2s}\r\n.hitl8gaka:hover{border-color:#dc262688}\r\n.hitl8gakg1{position:absolute;inset:0;background:radial-gradient(ellipse at 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0;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitl8gaks{font-size:13px;color:rgba(255,255,255,.6);line-height:1.4;margin-top:3px;white-space:nowrap;overflow:hidden;text-overflow:ellipsis}\r\n.hitl8gakbl{display:none;flex-direction:column;gap:5px;margin-top:9px;align-self:flex-start}\r\n.hitl8gakbi{display:flex;align-items:center;font-size:11px;color:rgba(255,255,255,.55);font-weight:500}\r\n.hitl8gakct{position:relative;z-index:1;flex-shrink:0;display:flex;flex-direction:column;align-items:center}\r\n.hitl8gakbtn{display:inline-flex;align-items:center;gap:6px;padding:10px 24px;background:#dc2626;background-image:linear-gradient(180deg,rgba(255,255,255,.12) 0%,transparent 100%);color:#fff;font-size:14px;font-weight:700;border-radius:8px;white-space:nowrap;box-shadow:0 0 20px #dc262666;border:none;cursor:pointer;font-family:inherit;transition:filter .15s,transform .15s}\r\n.hitl8gakbtn:hover{filter:brightness(1.15);transform:scale(1.04)}\r\n.hitl8gakbr{font-size:9px;color:rgba(255,255,255,.18);text-align:center;margin-top:5px;letter-spacing:.1em;text-transform:uppercase}\r\n\/* \u2500\u2500 Compact horizontal: 380\u2013599px (like 320\u00d7100) \u2500\u2500 *\/\r\n@container (min-width:380px) and (max-width:599px){\r\n  .hitl8gaka{padding:12px 22px;gap:12px;min-height:100px}\r\n  .hitl8gakh{font-size:16px}\r\n  .hitl8gaks{display:none}\r\n  .hitl8gakbtn{padding:7px 16px;font-size:11px}\r\n}\r\n\/* \u2500\u2500 Mobile\/card: < 380px (like 300\u00d7250) \u2500\u2500 *\/\r\n@container (max-width:379px){\r\n  .hitl8gaka{flex-direction:column;align-items:center;justify-content:space-between;min-height:260px;padding:22px 22px;gap:10px}\r\n  .hitl8gakc{align-items:center;text-align:center}\r\n  .hitl8gakh{font-size:22px;white-space:normal}\r\n  .hitl8gaks{font-size:11px;white-space:normal}\r\n  .hitl8gakbl{display:flex;align-self:center;text-align:left}\r\n  .hitl8gakbtn{width:100%;justify-content:center;padding:12px 20px}\r\n}\r\n\/* \u2500\u2500 Wide: >= 600px (leaderboard style) \u2500\u2500 *\/\r\n@container (min-width:600px){\r\n  .hitl8gaka{min-height:90px}\r\n}\r\n<\/style><!-- HiT Land Banner \u2014 Container Query Responsive -->\r\n<div class=\"hitl8gakw\">\r\n<a class=\"hitl8gaka\" href=\"https:\/\/hit.land\/services\/web-app-development\" target=\"_blank\" rel=\"noopener nofollow\" style=\"animation:hitl8gak-fadein 0.7s ease both;animation-delay:0s;\">\r\n  <div class=\"hitl8gakg1\" style=\"animation:hitl8gak-glow 3s ease-in-out infinite;\"><\/div>\r\n  <div class=\"hitl8gakg2\"><\/div>\r\n  <div class=\"hitl8gakgl\" style=\"animation:hitl8gak-shimmer 3s ease-in-out infinite;\"><\/div>\r\n  \r\n  <div class=\"hitl8gakc\">\r\n    \r\n    <div style=\"display:inline-flex;align-self:flex-start;align-items:center;gap:6px;background:rgba(255,255,255,0.08);border:1px solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">\u0639\u0631\u0636 \u062d\u0635\u0631\u064a<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">\u0645\u0648\u0642\u0639\u0643 \u0627\u0644\u0625\u0644\u0643\u062a\u0631\u0648\u0646\u064a <span style=\"color:#dc2626;\">\u064a\u0646\u0628\u063a\u064a \u0628\u064a\u0639\u0647.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">\u0645\u0648\u0627\u0642\u0639 \u0648\u064a\u0628 \u0645\u0635\u0645\u0645\u0629 \u062e\u0635\u064a\u0635\u064b\u0627 \u0628\u0645\u064a\u0632\u0627\u062a \u0623\u062a\u0645\u062a\u0629 \u0630\u0643\u064a\u0629 \u0648\u0645\u064a\u0632\u0627\u062a \u0645\u062f\u0639\u0648\u0645\u0629 \u0628\u0627\u0644\u0630\u0643\u0627\u0621 \u0627\u0644\u0627\u0635\u0637\u0646\u0627\u0639\u064a.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u0645\u064f\u062d\u0633\u0651\u0646 \u0644\u0645\u062d\u0631\u0643\u0627\u062a \u0627\u0644\u0628\u062d\u062b \u0648\u0633\u0631\u064a\u0639 \u0644\u0644\u063a\u0627\u064a\u0629<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u0645\u064a\u0632\u0627\u062a \u0630\u0643\u064a\u0629 \u0645\u0635\u0645\u0645\u0629 \u062e\u0635\u064a\u0635\u0627\u064b \u0644\u0639\u0645\u0644\u0643<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">\u0627\u062d\u0635\u0644 \u0639\u0644\u0649 \u0627\u0633\u062a\u0634\u0627\u0631\u0629 \u0645\u062c\u0627\u0646\u064a\u0629 <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">\u0636\u0631\u0628.\u0627\u0644\u0623\u0631\u0636<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p><strong>\u062a\u062d\u0644\u064a\u0644 \u062e\u0627\u0635 \u0645\u0646 \u0639\u0645\u0627\u0646\u062a | \u062a\u0635\u0641\u062d \u0633\u0648\u0642 \u0639\u064f\u0645\u0627\u0646<\/strong><\/p>\n<p>The recent clarification from the Tax Authority on VAT calculation in the oil and gas sector indicates <strong>a streamlined approach to taxation<\/strong>, reinforcing compliance and transparency. This creates <strong>\u0641\u0631\u0635 \u0644\u0644\u0634\u0631\u0643\u0627\u062a<\/strong> to enhance financial planning by understanding the exact VAT implications, but it also introduces <strong>risks for those unfamiliar with the process<\/strong>, leading to potential compliance issues. Smart investors and entrepreneurs should <strong>prioritize staying informed<\/strong> about such tax regulations to leverage benefits while mitigating risks associated with misinterpretation or miscalculation.<\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>The Tax Authority clarified VAT calculation in the oil and gas sector. A 1.2% deduction for training and employment is applied after VAT is calculated on the total invoice value. This deduction does not affect the taxable amount. For queries, taxpayers can contact the Authority&#8217;s call center.<\/p>","protected":false},"author":2,"featured_media":12600,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[443,5359,2414],"class_list":["post-12599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-oil-and-gas","tag-taxation","tag-vat"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/06\/3419329.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/posts\/12599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/comments?post=12599"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/posts\/12599\/revisions"}],"predecessor-version":[{"id":12601,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/posts\/12599\/revisions\/12601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/media\/12600"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/media?parent=12599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/categories?post=12599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/ar\/wp-json\/wp\/v2\/tags?post=12599"}],"curies":[{"name":"\u0648\u0648\u0631\u062f\u0628\u0631\u064a\u0633","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}