Oman Updates Zero-Rated VAT Lists, Covering 1,546 Food, Medical and Veterinary Items
Oman’s Tax Authority has issued 3 decisions that set out the goods subject to value added tax at zero percent, covering basic food, human medicines and medical equipment, and veterinary medicines and equipment. The decisions were issued on 22 September and published in Official Gazette issue 1667 on 27 September, and take effect on 1 October. They replace the 2021 food and medicines decisions. The standard rate of 5 percent is unchanged.
The 3 decisions
| Decision | Scope | Items | Replaces |
|---|---|---|---|
| 225/2026 | Food goods | 807 | Decision 65/2021 |
| 224/2026 | Medicines, medical equipment, foods for medical use | 677 | Decision 59/2021 |
| 223/2026 | Veterinary medicines and equipment | 62 | None cited |
| Total | 1,546 |
Food accounts for 52.2 percent of the listed items, medicines and medical goods 43.8 percent and veterinary products 4.0 percent, on our calculation. Medicines qualify when the Ministry of Health issues a release permit, and veterinary items when the Ministry of Agriculture, Fisheries and Water Resources does. The authority said the aim is to strengthen social protection and ease living costs for citizens and residents.
Timing against food prices
Consumer prices rose 3.4 percent year on year in August and averaged 2.9 percent over January to August, according to the National Centre for Statistics and Information. Food and non-alcoholic beverages rose 7 percent, more than twice the headline rate, and transport led with 8.5 percent.
Central bank board
The Central Bank of Oman’s board held its third meeting of 2026 on 27 September. It adopted a Policy on the Classification and Licensing of Banks and Representative Offices of Foreign Banks, aimed at strengthening the banking sector’s regulatory framework, and an Emergency Policy and Framework with related procedures. The board also approved the bank’s second quarter financial position, the 2026/2027 budget of the College of Banking and Financial Studies, and commemorative coins marking Omani Women’s Day.
Why it matters: With food prices rising at about twice the headline rate, the updated zero-rated food list targets one of the fastest rising parts of the household basket. The central bank’s board also updated its frameworks for bank licensing and emergencies.
Outlook: October’s consumer price data will be the first full monthly reading after the new lists take effect.
Sources: Oman News Agency, Official Gazette, Central Bank of Oman, National Centre for Statistics and Information.
