The Oman Tax Authority has published procedures for applying VAT in Special Economic Zones.

The Oman Tax Authority (‘TA’) has published procedures for applying Value Added Tax (VAT) in Special Economic Zones.

1.      The supplies of goods or services to or from the Special Zones, or within them, maybe zero-rated following the condition laid down in Articles of (101) to (107) of VAT ERs (Decision 53/2021)

2.      Special Economy Zone-Duqm and the Free Zone in Salalah, Sohar, and Al Mazyunah have been classified as Special Zones.

3.      The VAT registration application may be submitted online through the Oman Tax Authority portal.

4.      A copy of the commercial license registration certificate and license certificate must be attached with the VAT registration application.

5.      In all cases, documents proving the transfer of goods to, within, or between the special zones must be kept; to be certified by the entity operating and supervising the Special Zone with regard to the supply of goods within the Special Zone.

6.      Following services are not to be considered as “Zero” rates in the Special Zone.
A. Restaurant and hotel services,
B. Food and beverage undertakings and cultural,
C. Artistic, sports, educational, and entertainment services

Source Tejveer Singh

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