Oman VAT reform to remain regionally competitive in retail
In a notable policy shift aimed at strengthening the Sultanate’s tourism competitiveness, the Oman Tax Authority has announced plans to introduce a VAT refund mechanism for tourists. This reflects competition for shoppers in the region, heightened by the 2025 Saudi Arabia VAT refund scheme launch.
The cost structures and refund percentages are still to be confirmed, but the the intention of launching a system that allows non-resident visitors to reclaim VAT paid on eligible retail purchases when leaving Oman.
What the Omani scheme will likely look like
Although operational details are still being finalised with service providers, international comparators suggest the Omani model will include (based on replicating the Saudi mode):
|
Feature |
Expected Omani approach |
|---|---|
|
Eligible persons |
Non-resident tourists departing Oman |
|
Eligible goods |
Retail goods exported in personal luggage |
|
Exclusions |
Services, hotels, restaurants, consumables |
|
Minimum spend |
Per-invoice threshold (to be confirmed) |
|
Refund method |
Airport validation + digital/desk refund |
|
Operator model |
Outsourced to specialist VAT refund providers |
|
Retailer participation |
Opt-in accredited merchants |
The reference to agreeing “cost and percentage” strongly indicates Oman will follow the standard commission model used globally, where a portion of the VAT is retained to fund the scheme.
