Muscat:The Tax Authority has issued three new administrative decisions that designate certain goods and products to be subject to a zero-percent value-added tax rate. This includes basic food commodities, human medicines and medical equipment, and veterinary medicines and medical equipment, effective from 1 October 2026.

According to Oman News Agency, these decisions are part of the Sultanate of Oman's efforts to enhance the social protection system, reduce living costs for citizens and residents, and support key sectors such as health, agriculture, and animal resources.

The first decision outlines a comprehensive list of basic food commodities eligible for the zero percent rate. This includes livestock and live animals such as cattle, sheep, goats, camels, and poultry intended for breeding, slaughter, or milk production. It also covers various types of meat, fish, seafood, dairy products, eggs, vegetables, fruits, legumes, coffee, tea, spices, and seasonings. The previous Decision No. (65/2021) and any conflicting provisions will be repealed under this new regulation.

The second decision aims to bolster the health sector by providing medical and pharmaceutical supplies at competitive prices. It covers medicines, herbal medicines, biological and health preparations, foods for medical uses, and medical equipment, all subject to zero-percent VAT with a release permit from the Ministry of Health. The annex includes antibiotics, hormones, vaccines, blood serums, infant foods, and smoking cessation products. This decision replaces Decision No. (59/2021) to unify regulatory frameworks.

The third decision supports the agricultural and animal sector by reducing costs for breeders and companies. It subjects veterinary medicines and medical equipment to zero-percent VAT, contingent on a release permit from the Ministry of Agriculture, Fisheries and Water Resources. The list includes veterinary vaccines, serums, antibiotics, vitamins, minerals, and nutritional supplements.

The Tax Authority emphasized that the goods and products affected by these decisions are detailed in annexes attached to the decisions, aligning with unified customs tariff codes. These measures are designed to provide clarity and facilitate implementation, all set to take effect from 1 October 2026.