Oman: Guidance concerning administrative tax disputes and VAT zero-rating for medicines

Oman: Guidance concerning VAT zero-rating for medicines

The Ministry of Justice and Legal Affairs issued guidance (decisions), one concerning the operating procedures of the Tax Grievance Committee and the other concerning the zero-rating of value added tax (VAT) for certain medicines and medical devices.

  • Decision Number 57/2021 addresses the processes of the Tax Grievance Committee (the entity that is responsible for adjudicating income tax, VAT, and excise tax-related “grievances” which is the second stage of tax disputes following objections).  The rules require certain information be supplied in disputes (for instance, that three copies of administrative appeals be filed in Arabic and within 45 days of the date of the notification).
  • Decision Number 59/2021 provides for the VAT zero-rating of supply of medicines, herbal medicines, biological products, health products, food for medical use, and medical devices. The effective date of this guidance is 16 April 2021.

Read an April 2021 report prepared by the KPMG member firm in Oman

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