Oman: No VAT, customs or registration fee on electric vehicles

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Muscat – The Tax Authority has announced that electric vehicles and EV parts will be exempt from value-added tax (VAT), customs tax and registration fee in the sultanate. Simultaneously, the Authority for Public Services Regulation (APSR) has introduced a new regulation governing charging of electric vehicles.

According to the Tax Authority (TA), zero VAT on EVs will be applicable under specific conditions, including the car must be equipped with a fully electric motor or hydrogen-powered engine, and it must be registered in Oman as either an electric car or zero-emission vehicle (hydrogen) in compliance with prescribed procedures.

Additionally, the EV must meet the specifications and standards approved in Oman. Purchase of the EV and its spare parts must be from a person or entity holding a registered VAT account in Oman.

TA emphasised that both VAT-registered and non-registered entities can import EVs or hydrogen-powered vehicles without incurring VAT. This aligns with the procedures set by the General Administration of Customs and customs tariff of corresponding items.

H E Salem bin Nasser Saeed al Aufi, Chairman of the Board of Directors of APSR, issued a decision (No 2023/15) to regulate EV chargers. The decision mandates that individuals who own or operate private or public electric charging points must adhere to the regulatory and technical requirements approved by APSR and the relevant authorities.

The new decision also permits individuals to instal private electric charging points within their residences. However, it states that no person can instal a private or public electric charging point without obtaining prior approval from the concerned electricity distribution company.

The responsibility of installing and operating a private electric charging point rests with the property owner. If the property is rented, the tenant must secure written consent from the property owner before installing a private charging point. The property owner retains overall responsibility for ensuring compliance with regulations, even in cases where a tenant is involved. Importantly, the law strictly prohibits the commercial use of private electric charging points.