Food Items Subject to Zero-rate VAT in Oman

Yarab A | Updated on: October 26, 2021

The VAT rate structure in Oman is broadly categorized into taxable, zero-rated and exempt. Majority of supplies in Oman will be taxable at 5% and certain notified supplies or products will be either zero-rated or exempt from VAT. Zero-rated supplies refer to the taxable supply on which VAT is charged at a zero rate. Given the importance of certain food products, a decision was made to add certain food items under the zero-rated list.

The ministerial decision 65/2021 determines the food products that are subject to VAT at the rate of 0%. The list contains products right from poultry, meat, fish to bread on which zero-rate VAT will be levied.  The addition of these products under the zero-rate category implies that you will be eligible to claim input VAT deduction. In simple words, though VAT is not charged on sale of these products, you can still claim VAT paid on the purchases/expenses.

List of food products subject to zero-rate VAT in Oman

We are listing some of the products which are zero-rate in Oman. To know the complete list, you can download the PDF file available below the table.

Poultry, Meats and Fish

Dairy and its derivatives

Fresh eggs

Vegetables and Fruits

 Coffee, tea, cardamom

Cereal/ grains

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

 Sugar

Bread, water and salt

The above is the list of food items that are classified as zero-rated supplies. It is important to note that zero-rated supplies come with conditions mentioned in the regulations and the authorities. 

Download the complete list of food Items subject to zero-rate VAT

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