Oman Guide: Which goods and services are exempt from VAT in Oman

VAT in Oman
Which goods and services are exempt from VAT in Oman

Exempt supplies in Oman are supplies non-taxable to VAT in Oman. The supplies of goods or services notified as exempt are not liable to VAT in Oman. The vital detail that needs memorizing here is that businesses cannot claim Input VAT deduction on VAT paid on the purchases.

List of exempt supplies in Oman VAT

The following are supplies that are exempt from the VAT in Oman. It is necessary to regard the particular stipulations and guidelines of the executive regulations on the following:-

  • Financial Services
  • Healthcare Services and relevant goods and services.
  • Educational Services and related goods and services.
  • Barren Land
  • Re-sale of residential properties
  • Regional passenger transport
  • Rental of properties for residential purposes

List of Imported Goods that are exempt under VAT in Oman

  • Imported Goods in circumstances where the supply of such goods is exempted from VAT in Oman or subject to Tax at a rate of zero percent in the destination point of entry.
  • Imported Goods in favor of diplomatic and consulate bodies, and international organizations, and to heads and members of consulate and consulate bodies certified by Oman, on the condition of reciprocity.
  • Anything imported to the armed forces and internal security forces such as ammunition, weapons, supplies, and military means of transport and its parts.
  • Personal effects and used household appliances brought by citizens residing abroad and foreigners coming to stay in the country for the first time.
  • Non-profit charities in Oman.
  • Returned Goods

Exemption in case of baggage and gifts

Personal baggage and gifts following travellers arriving in Oman and prerequisites of people with special needs are exempt from Tax. It is exempt only on meeting the specific conditions and rules mentioned in the regulations.

VAT exemptions provided in Oman for financial services, re-sale residential buildings, and supply of bare land and local passengers, etc. However, to consider exemption from the VAT in Oman, the specific conditions mentioned in the Oman VAT law and Executive Regulations in Oman need to be fulfilled.

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