Oman Slashes VAT to 0% on 1,546 Essential Goods
Residents in Oman are set to receive significant financial relief as the government rolls out a major tax reduction on essential commodities. Starting October 1, 2026, the Oman Tax Authority will implement a 0% VAT rate on 1,546 items, covering food, medical supplies, and veterinary products.
These changes, published in the Official Gazette on September 27, 2026, aim to mitigate the impact of rising living costs and support the healthcare and livestock sectors amidst ongoing inflationary pressures.
Massive Expansion in Tax-Free Food Items
One of the most impactful changes involves the food sector. Under regulatory decision No. 225/2026, the list of food items eligible for 0% VAT has been significantly expanded from 513 entries to 807 items. This move is designed to lower the cost of basic nutrition for households.
The expanded list of tax-exempt food items includes:
- Meat and Poultry: Beef, lamb, goat, camel, and chicken.
- Livestock: Live animals intended for breeding or slaughter.
- Seafood and Dairy: Various seafood products and dairy goods.
- Produce and Staples: Fruits, vegetables, eggs, and grains.
- Pantry Essentials: Coffee, tea, spices, and bottled water.
- Agriculture: Animal feed.
Relief for Healthcare and Veterinary Sectors
The government is also targeting the cost of health and animal welfare through two additional regulatory decisions. These measures ensure that critical medical and agricultural supplies remain affordable.
Human Medical Supplies
Under decision No. 224/2026, 677 human medical items will now attract 0% VAT instead of the previous 5%. To qualify for this relief, items must meet specific customs headings and require a permit from the Ministry of Health. The relief covers:
- Essential medicines and antibiotics.
- Vaccines and biological preparations.
- Vitamins and infant formula for medical use.
- Surgical equipment and medical furniture.
Veterinary Support
To support the livestock industry, decision No. 223/2026 introduces 0% VAT on 62 veterinary products. These items, which require permits from the Ministry of Agriculture, Fisheries and Water Resources, include veterinary vaccines, hormones, and antibiotics.
Consumer Advice: Checking Your Receipts
While the tax cuts offer relief, authorities have advised shoppers to be vigilant when making purchases. It is important to verify that the 0% rate is correctly applied to the eligible items on your receipt.
Consumers should keep the following in mind:
- Verify Charges: If a 5% VAT charge is applied to an item on the official list, customers should request verification from the retailer.
- Processed Goods: Note that processed or branded goods that fall outside these specific categories will still be subject to the standard 5% VAT.
- Plastic Bag Ban: Shoppers are also reminded that many stores have banned plastic bags since July 2026, so bringing reusable bags is essential.