Friday, September 17
11:33 PM

Tax Authority issues list of 90 food items exempted from VAT

16 Jan 2021

As Oman braces for the implementation of the Value Added Tax (VAT) from April 16,2021, the Tax Authority has issued a list of over 90 food items that are exempted. Food items that are not specifically zero rated would attract VAT at the standard rate of five per cent.

According to the earlier report released by the Ministry of Finance as part of Oman’s Medium-Term Fiscal Plan 2020-2024, the introduction of VAT, which was introduced via Royal Decree No 121/2020 on October 12, 2020, will serve as the foundation for the sultanate’s revenue-raising framework by introducing a broad-based indirect tax.

‘A socio-economic impact assessment has been carried out by an independent third-party to assess the fiscal, social and economic impact of VAT in Oman,’ the report said.

With the implementation, Oman will join over 150 other countries globally that impose VAT and experts say the tax is expected to provide an additional source of support to the Oman’s treasury. The move is also in line with the sultanate’s commitment to its Vision 2040 programme, which seeks to diversify the economy away from oil and towards non-oil sectors such as manufacturing, logistics and tourism.

 

Zero VAT for over 90 items 

Poultry, Meat and Fish

Layer chicken

Broiler chicken

Chicken weighing not more than 185g from Gallus Domesticus species

Full and half carcasses of bovine animals, fresh or chilled

Bovine meat cuts with bones, fresh or chilled

Boneless bovine meat, fresh or chilled

Full and half carcasses of lamb, fresh or chilled

Full and half carcasses of sheep, fresh or chilled

Sheep meat cuts with bones, fresh or chilled

Boneless sheep meat, fresh or chilled

Full and half carcasses of goat, fresh or chilled

Goat meat with bones, fresh or chilled

Boneless goat meat, fresh or chilled

Offal and other parts of sheep or goat, fresh or chilled

Meat, offal and other parts of camel and other camelids, fresh or chilled

Frozen meat, offal and other parts of camel and other camelids

Yellowfins tuna (Thunnus albacares)

Bigeye tuna (Thunnus obesus)

Atlantic and pacific bluefins tuna (Thunnus, Thynnus, Thunnus orientalis)

Southern bluefin tuna (Thunnus maccoyii)

Longtail tuna (Thunnus tungle)

Kawakawa (Thunnus Avinus)

Mackerel (Kingfish, spotted soabusg mackerel)

Trevally

Seabream (Sparidae)

Grouper (Hamor, Bertam, Chenino, Cato, Nagel, Samman)

Shei’ri fish (Sheoor)

Hamra fish (Alesmaudi)

Nagroor fish

Bori fish (Meed and Biyah)

Safi fish

Barracuda

 

Dairy Products

Long life milk in containers exceeding 1lt

Milk in powder, granular or solid form, of fat content by weight exceeding 1.5 per cent, not containing added sugar or sweetener

Fresh yoghurt

Fresh (unripe or uncured) cheese, including whey cheese and curd

Fresh Eggs

Fresh eggs of fowls of the species Gallus Domesticus (Fresh chicken eggs)

Fruits and Vegetables

Potatoes, fresh or chilled

Tomatoes, fresh or chilled

Onions for food (green or dry rind), fresh or chilled

Garlic, fresh or chilled 

Cabbage lettuce 

(head lettuce), fresh or chilled

Carrots and turnips, fresh or chilled

Cucumbers and gherkins, fresh or chilled

Peas (pisum sativum), fresh or chilled

Beans (Vigna spp, Phaseolus spp), fresh or chilled

Other beans, fresh or chilled

Aubergines (egg-plants), fresh or chilled

Fruits of the genus Capsicum or of the genus Pimenta

Spinach, New Zealand spinach and orache spinach (garden spinach)

Olives

Pumpkins, squash and gourds (Cucurbita spp)

Marrow

Okra

Parsley

Coriander

Fresh dates

Pressed dates

Pineapples

Guavas

Mangoes

Oranges

Mandarin (tangerines & satsumas), clementines, wilkings and citrus hybrids

Fresh lemons

Dried lemons

Fresh grapes

Watermelons 

Green melons 

Yellow melons

Apples

Pears

Apricots

Sour cherroes (prunus cerasus)

Kiwifruit

Pomegranates

 

Coffee beans, tea and cardamom

Unroasted coffee beans (not decaffeinated)

Roasted coffee beans (not decaffeinated)

Green tea (not fermented), in packages not exceeding 3kg 

Other green tea (not fermented)

Tea bags not exceeding 3g each

Other black tea (fermented) and other partly fermented tea

Cardamom (neither crushed nor ground)

Crushed or ground cardamom

 

Flour

Normal wheat

Thin wheat

Semi-milled or wholly milled rice, whether or not polished or glazed

Wheat flour

Olive oil and its fractions, whether or not refined, but not chemically modified

Virgin olive oil

 

Sugar

Refined sugar (fine crystals)

Baby food supplies

Infant and baby food based 

on milk or malted milk 

prepared as substitute of mother’s milk, not containing cocoa

 

Breads

Ordinary bread of any kind

Water

Artificial mineral water

Ordinary natural water

Salt

Common salt (table salt)

© 2021 Apex Press and Publishing. All Rights Reserved.