On 28 September 2026, the Oman Tax Authority issued three new decisions expanding the list of goods and services subject to the 0% VAT rate. The decisions cover essential food items, medical supplies, and healthcare services, aligning with the government’s social protection objectives. The zero-rating reduces the tax burden on consumers and supports affordability of critical goods.
Key Takeaways
- Expansion of zero-rated VAT to include specific essential goods and healthcare products: The decisions specify additional categories such as basic food staples, pharmaceuticals, and medical equipment that now qualify for 0% VAT.
- Immediate application with transitional provisions for businesses: The zero-rating takes effect immediately, with transitional rules allowing businesses to adjust invoicing systems and claim input tax credits on related supplies.
- Impact on VAT refund claims and invoicing requirements for suppliers: Suppliers must update tax invoices to reflect zero-rated supplies and ensure proper documentation for VAT refund applications.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement