MUSCAT: Oman’s Tax Authority has issued three decisions expanding the range of food, medical and veterinary products subject to a zero rate of value added tax (VAT), effective October 1.
The measures cover basic food commodities, medicines and medical equipment for human use, and veterinary medicines and equipment. The authority said the decisions were intended to ease living costs and support the healthcare, agriculture and livestock sectors.
The first decision applies the zero rate to an extensive list of essential food products, including cattle, sheep, goats, camels and poultry intended for breeding, slaughter or milk production.
It also covers fresh, chilled, frozen and minced meat; fish and seafood; milk, yoghurt, labneh, butter and cheese; table and hatching eggs; fresh and dried fruit and vegetables; legumes; coffee; tea; spices and seasonings.
The decision repeals Decision No 65/2021 and any provisions that conflict with the new rules.
The second decision applies the zero rate to medicines, herbal medicines, biological and health preparations, food for medical purposes and medical equipment, provided the Ministry of Health issues a release permit in accordance with the approved customs classification.
Covered products include antibiotics, hormones, vaccines, blood sera, infant formula, food for specific medical conditions, medical solutions, oxygen, dental products and smoking-cessation aids such as patches and sprays.
The measure replaces Decision No 59/2021 and is intended to consolidate the regulatory framework governing the zero-rating of medical and pharmaceutical supplies.
The third decision applies the zero rate to veterinary medicines and medical equipment listed in its annex, subject to a release permit from the Ministry of Agriculture, Fisheries and Water Resources based on the relevant customs codes.
Covered veterinary products include vaccines, sera, biological toxins, antibiotics such as penicillin and streptomycin, vitamins, minerals, nutritional supplements, solutions, gels and testing tools used in veterinary examinations and procedures.
The Tax Authority said the goods covered by the three decisions were identified in annexes using Unified Customs Tariff codes to clarify their scope and facilitate implementation. — ONA
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