Thursday 05 / February / 2026
Muscat: The Tax Authority has revealed plans to introduce a Value Added Tax (VAT) refund system for tourists, a move expected to enhance Oman’s appeal as a travel destination and boost visitor spending.
Speaking during the Authority’s first media briefing in Muscat, a senior official of the Tax Authority said the government is working towards implementing a VAT refund service for tourists after reaching agreements with service providers on applicable costs and refund percentages.
“The government will implement a service to refund the value-added tax to tourists after reaching an agreement with the companies that provide these services in terms of cost and percentage,” a senior official said.
The announcement came as part of a broader review of the tax system’s performance, key developments, and future plans presented during the media session.
During the briefing, the Tax Authority also confirmed that it had successfully achieved its revenue targets for 2025, in line with estimates set for the units of the State’s administrative apparatus in the general budget. The total current revenues were estimated at approximately OMR 1.373 billion.
Officials noted that the proposed VAT refund mechanism would align Oman with international best practices adopted by major tourism destinations, where tax refund schemes are used to encourage tourist spending and enhance competitiveness.
