Muscat, Oman – October 14, 2025
Omani businesses importing goods from the UAE can now avoid double Value Added Tax (VAT) charges, thanks to a new initiative by the Oman Tax Authority (OTA). This significant update simplifies cross-border trade by implementing a three-step plan aimed at zero-rating VAT on UAE imports and enabling recovery of any VAT already paid.
Key Highlights
Overseas Supply Export Rule: Omani companies can coordinate with their UAE suppliers to have goods shipped directly to Oman as an “overseas supply export.” In this scenario, VAT is not applied, and the transaction is classified as zero-rated (0% VAT), provided that export documentation, including the export declaration, is submitted according to UAE tax regulations.
Credit Note Mechanism: If VAT is paid at the time of purchase, companies have two choices:
The UAE supplier may issue a credit note to the Omani buyer, refunding the VAT after the export is validated with an export declaration showing the goods’ shipment to Oman.
Alternatively, the Omani company can apply directly to the UAE Federal Tax Authority for a refund using the “Business Visitor VAT Refund Form,” provided all service conditions are met and the Omani company does not have branches or a fixed establishment in the UAE.
Simplified Procedures: This clarification is intended to simplify procedures, help companies avoid undue VAT expenses, and promote enhanced trade cooperation between Oman, the UAE, and other Gulf countries applying VAT.
For more information on the Oman Tax Authority’s VAT guidelines, please visit: https://www.omanobserver.om/article/1178109/business/economy/omani-firms-can-avoid-double-vat-while-importing-from-uae-authority
