Saturday 12 / September / 2026
Oman’s Value Added Tax Law, promulgated by Royal Decree 121/2020, exempts a wide range of goods and services from VAT, with detailed conditions set out in the Executive Regulation issued by Tax Authority Decision 53/2021, which has since been amended by Decisions 456/2022, 521/2023, 81/2025 and 189/2026.
Speaking to Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Chairman of Mohammed Ibrahim Law Firm, stated that “the key categories of exempt supplies include financial services such as loans, credit facilities, deposits, financial instruments, securities, and life insurance. This does not cover financial services for which the customer pays a fee, commission, or commercial discount.”
He further stated that “healthcare services from licensed medical establishments are exempt, along with directly related goods and services for patients, such as ambulance transport and accommodation. Education services from licensed institutions are also exempt, along with related goods and services for students, such as transport, meals, and accommodation. Courses outside an approved curriculum are taxable.”
“Scheduled public transport and public taxis are exempt, except taxis run by specialised companies. Residential property leased for a continuous period of at least three months, under a lease agreement that complies with Oman’s tenancy laws, is also exempt,” he said.
He added that “undeveloped land, meaning land with no construction, structure, or part of a completed structure on its surface or underground, is exempt from VAT, and so is the resale of existing residential property. The first sale of a residential property, as well as hotels, tourist complexes, and commercial buildings, remains taxable.”
“Imported goods exempt from VAT include goods for diplomatic missions and international organisations on a reciprocal basis; items for the Armed Forces and Internal Security Forces, including ammunition, weapons, supplies, military transport, and parts thereof; supplies to non-profit charities; returned goods; and personal belongings and used household appliances of citizens residing abroad or foreigners arriving in Oman for the first time,” he said.
“Travellers’ personal baggage and gifts are exempt if of a personal, non-commercial nature and within the value limit and other conditions of the Regulation. Disability equipment is also exempt when imported from outside the GCC by licensed associations, government entities, or GCC nationals holding an official disability card, for personal use, subject to the conditions set out in the Regulation,” he concluded.
(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).
