Tax Authority Specifies Goods
Subject to Zero-Percent VAT

Muscat, 27 Sep 2026 (ONA) — The
Tax Authority issued today three new administrative decisions designating the
goods and products subject to value-added tax at a zero percent rate to include
basic food commodities, human medicines and medical equipment, as well as veterinary
medicines and medical equipment, all of which shall enter into force as of 1 October
2026.

These decisions come within the
framework of the Sultanate of Oman’s keenness to strengthen the social
protection system, alleviate living and financial costs and burdens on citizens
and residents, and support vital sectors such as health, agriculture, and
animal wealth.

In detail, the first decision
provides for subjecting a broad and comprehensive list of basic food
commodities and materials to the zero percent rate. The exemptions include
livestock and live animals of cattle, sheep, goats, camels, and poultry
designated for breeding, slaughter, or milk production, as well as various
types of beef, sheep, goat, camel, and poultry meat in all their fresh,
chilled, frozen, and minced forms.

The decision also covers a wide
range of fish and seafood, whether live, fresh, or frozen, in addition to basic
dairy products including long-life and evaporated milk, yoghurt, labneh,
butter, and cheeses of various types, as well as table and hatching eggs, fresh
and dried vegetables and fruits, legumes, coffee and tea, and various spices
and seasonings. Under this decision, the previous Decision No. (65/2021) and
all provisions conflicting with its new provisions shall be repealed.

The second decision comes as a
continuation of national efforts aimed at supporting the health sector and
providing medical and pharmaceutical supplies and products at appropriate
prices for patients and consumers. The decision provides for subjecting
supplies of medicines, herbal medicines, biological and health preparations,
foods for medical uses, and medical equipment to value-added tax at a zero
percent rate, provided that a release permit is issued therefor by the Ministry
of Health in accordance with the approved customs heading. The products covered
in the annex include antibiotics, hormones, vaccines, blood serums, infant foods,
foods designated for medical conditions, medical solutions, oxygen gas, dental
products, as well as smoking cessation products such as patches and sprays.
This decision replaces the previous Decision No. (59/2021) in order to unify
the regulatory frameworks.

In the same context, the third
decision came in support of the agricultural and animal sector and to alleviate
costs on breeders and companies operating in this field. The decision provides
for subjecting supplies of veterinary medicines and medical equipment specified
in the annex to the decision to value-added tax at a zero percent rate,
whenever a release permit is issued therefor by the Ministry of Agriculture,
Fisheries and Water Resources in accordance with their customs codes.

The covered list is diverse,
encompassing veterinary vaccines and serums, biological toxins, antibiotics
such as penicillin and streptomycin, vitamins, minerals, and nutritional
supplements, in addition to solutions, gel preparations, and experimental
instruments used in veterinary examinations and procedures.

The Tax Authority affirmed that
the goods and products covered by the three decisions are specified in the
annexes attached thereto in accordance with the unified customs tariff codes,
thereby contributing to clarity regarding the scope of goods subject to the
zero percent rate and facilitating the implementation of the decisions. These
decisions shall enter into force as of 1 October 2026.

— Ends/AH