Here are the items exempt from VAT once it comes to Oman

Muscat: Although a value added tax is expected to come into effect in six months’ time, there are a number of goods and services exempt from it.

According to Oman’s Government Communications Centre, “basic food commodities, goods and services related to medical care, goods and services pertaining to education, and items used by people with disabilities” are all exempt from tax.

Furthermore, there will be no VAT added to sales deals involving residential real estate and vacant, undeveloped land.

Value added tax will also not be imposed on investments in gold, silver and platinum, as well as companies involved in supplying or operating vehicles that transport goods and passengers, by land, sea or air.

Companies involved in the “supply of rescue and emergency service aircraft and other vehicles, as well as those operating in supplying crude oil and its derivatives, and natural gas,” will also not need to pay VAT, according to the communications centre.

The announcement of VAT being introduced to Oman was made through Royal Decree No 121/2020, which is on the promulgation of the Value Added Tax Law, issued by His Majesty Sultan Haitham Bin Tarik.

According to the decree, the regulations and other legal provisions necessary to implement the law will be issued prior to the date of VAT coming into effect.