The provisions of Article 54 of Oman Sultani Decree No. 121/2020 (VAT Law) stipulates that supplies of goods or services to or from the Special Zones, or within them, may be zero-rated following the conditions laid down in Articles of 101 to 107 of Oman Decision 53/2021 (VAT Executive Regulations). We would like to inform you that the Special Economic Zone in Duqm and the Free Zones in Salalah, Sohar, and Al Mazyunah have thereby been classified as Special Zones in accordance with the provisions of Article 102 of Oman Decision 53/2021.

Tax Authority will publish detailed procedures for the purposes of applying VAT at a rate of zero percent in the Special Zones, companies, enterprises, businesses and establishments operating in these areas must comply with the conditions stipulated in the VAT Executive Regulations. These conditions include VAT Registration and VAT Administration as detailed below.