The Omani Tax Authority (OTA) has issued clear guidance on VAT Oman companies importing goods from the UAE and other GCC countries. The update aims to simplify procedures, reduce tax burdens, and strengthen trade cooperation across the Gulf region.
The OTA explained that companies can work with UAE suppliers to ship goods directly to Oman under the “overseas supply export” system. In these cases, businesses pay no VAT. The transaction becomes zero-rated once the exporter submits proper documentation, including a verified export declaration, in line with UAE tax rules. This process ensures compliance while facilitating smoother cross-border trade.
When VAT is already paid at purchase, companies have two refund options. First, UAE suppliers can issue a credit note after verifying the export, refunding the VAT directly to the buyer. Alternatively, Omani companies may apply to the UAE Federal Tax Authority using the ‘Business Visitor VAT Refund Form.’ This method requires the company to meet certain conditions and not maintain a branch or fixed establishment in the UAE.
The OTA also stressed that companies must keep accurate records of exports and VAT oman payments. By doing so, they can avoid compliance issues and streamline operations between Oman and other GCC nations. Officials encouraged businesses to adopt the updated procedures to optimize supply chains and save costs.
Additionally, the clarification supports regional efforts to harmonize tax practices. Analysts said the guidance could significantly benefit Omani businesses, reduce administrative hurdles, and improve transparency in cross-border transactions. Moreover, it reinforces the GCC’s commitment to creating a unified framework for trade and taxation.
Transitioning to these new rules, companies can confidently manage imports while staying compliant with both Omani and GCC tax regulations. In turn, the simplified process promotes investment, strengthens trade relations, and enhances the ease of doing business in the region.
By implementing these updates, the OTA ensures that businesses benefit from efficient VAT handling and fosters a more competitive trade environment. Companies are encouraged to train staff and adapt internal processes to fully leverage the new guidance.
