MUSCAT – Omani companies can avoid incurring undue VAT charges when purchasing goods from the UAE for export and subsequent import into Oman through two main options:
First Option: Supply for Export Purposes (0%).
Companies can coordinate with UAE suppliers to have goods supplied directly to 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 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’ provided the company meets specific conditions and does not have branches or a fixed establishment in the United Arab Emirates.
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The Tax Authority emphasised that this clarification aims to simplify VAT procedures for businesses, prevent undue tax costs, and strengthen trade cooperation between Oman, the UAE, and other VAT-applying GCC countries.
