The provisions of the VAT Executive Regulations in Oman have classified the Special Economic Zone in Duqm and the Free Zones in Salalah, Sohar, and Al Mazyunah as Special Zones.VAT Law in Oman stipulates that supplies of goods or services to or from the Special Zones, or within them, may be zero-rated. Tax Authorities will be publishing the VAT procedures at zero rates in detail, for Special zones, companies, enterprises, businesses and establishments, including the conditions for VAT registration and Administration.
VAT FOR FREE ZONES
Enterprises, companies, firms and establishments in the Special zone are Zero rated taxable and they all must apply for authorization and VAT registration in Oman.
The Applications for this are submitted through the electronic portal of the Tax Authority in Oman.
The person applying must prove that they have valid license and registration in the Special Zone.
The VAT registrant in Oman must attach to the VAT registration application:
- a copy of the commercial registration certificate; and
- a copy of the license certificate.
issued by the relevant Special Zone Authority in Oman for carrying out economic activity.
VAT Administration for transportation of Goods in Oman
According to the VAT Executive Regulations in Oman, while transporting or supplying goods within the Special Zones,
- The customer or the recipient is subject to Tax.
- The customer or the recipient be licensed and registered by the operating and supervising authority. The free zone to conduct the activity within the Special Zone in Oman.
- The customer or the recipient has received the goods for the activity within the place.
- The goods shall not be among the goods excluded from the right of deduction by the provisions of the Executive Regulations in Oman.
To Prove the transfer and supply of goods in Special Zones, they must keep relevant documents. The firm concerning the supply of goods within the Special Zone, operating and supervising in special Zone in Oman, must issue certifications, which includes documents issued by Oman Customs concerning the supply and transportation of goods to the Special Zone or from one Special Zone to another.
