The Tax Authority issues three new decisions expanding the 0% VAT rate list to cover essential goods and healthcare products.

The Tax Authority, has issued three new administrative decisions specifying the goods and products subject to a zero percent (0%) Value Added Tax (VAT) rate. The decisions cover basic food staples, human medicines and medical equipment, as well as veterinary medicines and medical supplies. The decisions will officially take effect on 1^st October, 2026.

These decisions align with the Sultanate of Oman’s dedication to strengthen the social protection system, mitigate living and financial burdens for citizens and residents, and support vital sectors such as public health, agriculture, and livestock resources. 

The First Decision mandates the application of a zero percent (0%) Value Added Tax rate to a comprehensive and expanded list of essential food items and goods. These items include livestock and live animals- such as cows, sheep, goats, camels, and poultry - designated for breeding, slaughter, or dairy production, alongside all types of fresh, chilled, frozen, and minced beef, mutton, goat, camel, and poultry meat. The decision also covers a wide range of live, fresh, and frozen fish and seafood, as well as essential dairy products including long-life and evaporated milk, buttermilk, labneh, butter, and all varieties of cheese. Furthermore, it encompasses table and hatching eggs, fresh and dried fruits and vegetables, legumes, coffee, tea, and assorted spices and condiments. Under this decision, the previous Decision No. (65/2021) and all provisions that contradict the terms of this new decision are officially repealed.

The Second Decision comes as a continuation of national efforts aimed at supporting the health sector and providing medical and pharmaceutical supplies at affordable prices for patients and consumers. The decision mandates the application of a zero percent (0%) Value Added Tax rate to supplies of medicines, herbal medicines, biological and health preparations, foods for special medical purposes, and medical equipment, provided they receive a clearance permit from the Ministry of Health in accordance with the approved customs codes. The products covered by the decision include antibiotics, hormones, vaccines, blood serums, infant formula, foods formulated for medical conditions, medical solutions, oxygen gas, dental products, and smoking cessation aids such as patches and sprays. This decision officially replaces the previous Decision No. (59/2021) to unify regulatory frameworks.

In this regard, the Third Decision was issued to support the agricultural and livestock sectors by alleviating costs for breeders and companies operating in this field. The decision mandates that supply of veterinary medicines and medical equipment specified in the annex of the decision are subject to a zero percent (0%) Value Added Tax rate, provided they receive a clearance permit from the Ministry of Agriculture, Fisheries and Water Resources in accordance with their designated customs tariff codes. The covered list varies to span veterinary vaccines and serums, biological toxins, antibiotics such as penicillin and streptomycin, vitamins, minerals, and nutritional supplements, as well as solutions, gel preparations, and experimental tools used in veterinary examinations and surgeries.