The Sultanate of Oman today issued three new administrative decisions that specify goods and products subject to a zero percent value added tax rate. These decisions include essential food items, human medicines, and medical equipment, as well as veterinary medicines and medical equipment, which will come into effect on October 1, 2026.
Strengthening the Social Support System
These decisions are part of the Sultanate of Oman's efforts to strengthen the social support system, reduce costs and financial burdens on citizens and residents, and support vital sectors such as health, agriculture, and livestock wealth.
The first decision includes a wide list of essential food items and raw materials that will be subject to the zero percent rate. Exemptions include livestock and live animals such as cows, sheep, goats, camels, and poultry for breeding, slaughtering, or milk production, as well as various types of beef, lamb, goat, camel, and poultry in all forms including fresh, chilled, frozen, and minced.
Support for the Health and Agriculture Sector
The second decision is presented as a continuation of national efforts to support the health sector and provide medical and pharmaceutical supplies and products at reasonable prices for patients and consumers. This decision includes tax exemptions for pharmaceutical supplies, herbal medicines, biological and health products, medical foods, and medical equipment.
The products covered by this decision include antibiotics, hormones, vaccines, blood serums, baby foods, special foods 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 number (59/2021) to integrate legal frameworks.
The third decision was also issued in support of the agricultural and livestock sector and to reduce costs for breeders and companies active in this field. This decision includes tax exemptions for veterinary medical supplies and equipment specified in the annex of the decision, provided that a release permit is issued by the Ministry of Agriculture, Fisheries, and Water Resources.
The covered list is very diverse and includes veterinary vaccines and serums, biological pesticides, antibiotics such as penicillin and streptomycin, vitamins, minerals, and nutritional supplements, as well as solutions, gel preparations, and testing tools used in veterinary examinations and procedures.
The Oman Tax Authority emphasized that the goods and products subject to the aforementioned three decisions are specified in the relevant annexes according to the unified customs tariff codes, which clearly assist in outlining the scope of goods subject to the zero percent rate and facilitate the implementation of these decisions. These decisions will come into effect on October 1, 2026.
Read more: Saudi Arabia Resumes East-West Pipeline Operations · 12.7 Percent Increase in Credit Granted by Banks in Oman
