Muscat: Oman Taxi Authority has issued clarification to Omani companies registered in Value Added Tax (VAT) regarding intraregional trade between the Sultanate of Oman, the United Arab Emirates, and other Gulf countries applying VAT

Omani companies can avoid incurring undue VAT charges when purchasing goods from the UAE for the purpose of exporting from the UAE and importing into the Sultanate of Oman, through two main options:

First Option: Supply for export purposes: 0 %.

Coordinate with the UAE supplier to supply the goods directly to the Sultanate of Oman as an 'overseas supply export.'

In this case, VAT is not imposed, and the supply is considered zero-rated (0%) after submitting the export documentation (export declaration) in accordance with the UAE tax regulations.

Second Option: Business Visitor VAT Refund Form service.

If VAT is paid at the time of purchase, there are two possible methods:

First: The UAE supplier issues a credit note after the export is proven with an export declaration document from the UAE to the Sultanate of Oman, so the VAT will be refunded by the supplier to the buyer.

Second: The Omani company submits a direct refund request to the Federal Tax Authority through the "Business Visitor VAT Refund Form" if the specified conditions for this service are met, and the Omani company must not have branches or a fixed establishment in the United Arab Emirates.

This clarification aims to simplify procedures for companies and help them avoid undue tax costs, in addition to enhancing trade cooperation between the Sultanate of Oman and the UAE, as well as other Gulf countries that apply VAT.

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