The Oman Tax Authority has released a new clarification outlining Value Added Tax (VAT) procedures for Omani companies importing goods from the United Arab Emirates (UAE) and other Gulf Cooperation Council (GCC) countries that apply VAT.
Under the new guidance, Omani VAT-registered businesses may coordinate with their UAE suppliers to ship goods directly to Oman as “overseas supply exports.” In these cases, no VAT is imposed, and the transaction is treated as zero-rated (0%), provided that valid export documentation, including an export declaration, is submitted in accordance with UAE tax regulations.
If VAT has been charged at the time of purchase, the Oman Tax Authority has outlined two options for refunds:
- Through the UAE supplier:
The supplier can issue a credit note once the export is verified through an export declaration, refunding the VAT amount directly to the Omani buyer. - Through the UAE Federal Tax Authority (FTA):
The Omani company can submit a Business Visitor VAT Refund Form directly to the UAE FTA, provided it meets the required conditions and does not have a branch or fixed establishment in the UAE.
This clarification is designed to simplify VAT compliance, reduce unnecessary tax costs, and enhance trade cooperation between Oman, the UAE, and other GCC countries implementing VAT systems.
By offering greater transparency on cross-border VAT treatment, the clarification helps businesses achieve smooth and compliant trade operations while supporting the GCC’s goal of harmonized tax practices.
✅ Key Highlights for Businesses:
- Imports from the UAE may qualify as zero-rated VAT exports.
- Proper export documentation is essential for VAT exemption.
- Refunds can be claimed either through the UAE supplier or the UAE Federal Tax Authority.
- The clarification promotes efficient VAT procedures and stronger regional trade.
