Muscat – Oman will introduce a value-added tax (VAT) refund scheme for tourists after reaching a final agreement with service providers on fees and refund rates, a move expected to boost the sultanate’s appeal as a regional tourism destination.

The announcement was made by the Tax Authority during a media briefing on Thursday in Muscat.

Nasser bin Khamis al Jashmi, Head of the Tax Authority, said the programme will be rolled out once contractual arrangements with operating companies are finalised, including the structure of service charges and the percentage of VAT to be refunded to visitors. He did not specify a launch date.

The initiative will bring Oman in line with several regional markets that offer VAT refunds to international visitors, a measure widely seen as encouraging higher tourist spending while preserving the country’s indirect tax framework.

Jashmi said the authority had met its target within the estimated revenues of the state’s administrative units under the 2025 budget, which stands at about RO1.373bn. He described taxation as a key pillar of fiscal sustainability and a fair mechanism to fund public services, drive development and enhance the country’s resilience to global economic shifts.

He informed that 353,000 tax returns were filed in 2025, marking a 37% increase compared to 2024. Taxpayer registrations also recorded strong growth, rising by 88% for income tax, 120% for VAT and 222% for excise tax in 2025 compared to 2021.

Tax revenues in 2025 totalled RO658mn from income tax, RO631mn from VAT and RO84mn from excise tax, he said. The total number of double taxation avoidance agreements in force with other countries was 39 at the end of 2025.

© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).