Dear Valued customers,

We trust this message finds you well.

As you are aware, Oman’s taxation framework has undergone some recent changes. These changes include, among other things, the introduction of the Value Added Tax (the “VAT”) starting 16 April 2021 through the VAT Law issued by virtue of Royal Decree No. 121/2020 and Oman Tax Authority Decision No. 3/2021 (the “VAT Legislation”).

The VAT is a consumption tax, which means that it applies to most goods and services purchased and availed by consumers within the Sultanate. The VAT Legislation sets the standard rate of this tax to 5% except where certain goods and services are either specifically exempted or zero rated.

Our systems will be designed to ensure that VAT is charged, collected and deposited on accrual or receipt basis (whichever is earlier) in accordance with the VAT Legislation. We will, therefore, be issuing valid tax invoices charging VAT at applicable rates on all our banking products and services starting 16 April 2021 in order to be VAT compliant.

As we, in Oman Arab Bank, care about your banking experience with us, we would like to bring to your attention the following points that we deem important in light of the recent changes:

If you are a retail customer,

Please note that our banking products tariff has changed, please click on this link to get yourself acquainted with our new banking products tariff list after the introduction of the VAT, that is all you need to do.

If you are a corporate customer,

The new VAT-inclusive tariff list of our corporate banking products is available on this link . We also require your cooperation to achieve the following:

  • Make sure you are registered as per the VAT Legislation. We recommend you obtain professional advice to check whether you are subject to VAT registration;
  • Complete the VAT Information Collection Form that you can download by clicking on this link , have it signed, scanned and sent to us via e-mail to by 31st May 2021;
  • If you do not wish to submit the VAT Information Collection Form (downloadable through the above link) via e-mail, then you can fill it up and submit it to your Oman Arab Bank branch by 31st May 2021;
  • If you do not share with us the information required in the VAT Information Collection Form, we will not be able to provide you with valid tax invoices; this may result in unnecessary and unrecoverable cost for your company;

If you are a borrowing corporate customer,

In addition to the preceding points applicable to all our corporate customers, please note that:

  • The terms and conditions of your facilities agreements with us have changed to be in line with the new VAT framework;
  • Please click on this link to see the changes to your facilities agreements; and
  • You may have received an email or a courier in this regard; if you did so, please comply with the instructions described therein.

We hope that this message helps you have a better understanding on your banking relationship with us in light of the new VAT framework, and if you have any questions please click on this link to get some responses to frequently asked questions in this regard.

Thank you for choosing Oman Arab Bank.

Best regards.



Effective from 16 April 2021, the following language is hereby incorporated and deemed as an integral part of your Credit Facilities Agreement – General Terms and Conditions with Oman Arab Bank SAOG by virtue of Article 20.2 thereof:

  1. In Article 2 (DEFINITIONS), the following is hereby added:

            Para. 2.15

Oman VAT Law” shall mean any Royal Decrees, Ministerial Decisions and official rules and regulations issued by any competent official authority in the Sultanate of Oman that are imposing or relating to the imposition or administration of a value added tax or goods and services tax in the Sultanate of Oman and any regulation made under the aforementioned rules and regulations.

            Para. 2.21

VAT” shall mean value added tax, goods or services tax or any similar tax imposed in accordance with the provisions of the Oman VAT law.

  1. An Article 22 (TAX-RELATED MATTERS), is hereby added as follows:

Unless herein stated to the contrary, and otherwise provided in this Agreement, any amounts payable by the Customer under this Agreement shall be exclusive of any taxes including by way of example VAT.

Where VAT is payable by the Customer under this agreement, the consideration – notwithstanding the definition of “consideration” in Oman VAT Law – for the services and/or transactions contemplated under this Agreement (VAT exclusive) shall be increased by an amount equal to the amount of VAT applicable at the prevailing rate according to the applicable Oman VAT Law at the time the services and/or transactions are supplied and/or consummated.

Any amounts of VAT due to OAB from the Customer under this Agreement shall be payable within thirty (30) days from the earliest of the date of the VAT invoice or of the supply and/or consummation of the services and/or transactions contemplated under this Agreement.

The remaining terms and conditions shall remain unchanged.

Hamida Al Balushi
Head of Credit Administration Department
For Oman Arab Bank SAOG