VAT Frequently Asked Questions
VAT (Value Added Tax) is an indirect tax which was introduced in the Sultanate of Oman with effect from 16th April 2021 with the standard rate currently 5%
Our non-life insurance products will be subject to VAT at the standard rate of 5% or zero- rate, Life Insurance will be exempt from VAT.
Where VAT is applicable, VAT will be charged in addition to your final insurance premium and the total amount (inclusive of VAT) will need to be paid by the policy holder to Al Ahlia.
Yes, Al Ahlia is VAT registered with effect from 16th April 2021 and our VAT registration number is OM1100011130. Our certificate of registration can be viewed below
Where applicable, Al Ahlia will collect the VAT from policy holders for the insurance services provided and will remit this amount to the Oman Tax Authority
This is likely but it is expected to be clarified in more detail in the Executive Regulations to be published by the Tax Authority.
Where applicable, Yes, Al Ahlia being a taxable person will be issuing Tax Invoices in the format complying with the VAT Regulation guidelines along with the policy documents.
If the policy is cancelled following Al Ahlia's VAT registration date (i.e., 16 April 2021), will there be a refund of VAT along with the premium?
Yes, if the VAT and premium amounts have been paid to Al Ahlia, Al Ahlia will refund the VAT and premium amounts on a pro-rata basis.
For any further clarifications please visit the Oman Tax Authority website:
where you can find responses to basic questions around VAT or write to us