VAT Refund Plan for Tourists Unveiled by Tax Authority: What It Means for Oman’s Business and Tourism Sectors
Muscat: The Omani government is set to launch a Value Added Tax (VAT) refund service for tourists following an agreement with service providers on the applicable costs and refund percentages, the Head of the Tax Authority announced.
This update was disclosed during the Tax Authority’s inaugural media briefing, which highlighted key developments, performance metrics, and future initiatives within Oman’s tax system.
The Director-General of Operations and Tax Services at the Tax Authority reported significant growth in tax registrations in 2025 compared to 2021: income tax registrants increased by 88%, VAT registrants by 120%, and excise tax registrants by 222%. Tax revenues for 2025 totaled RO 658 million from income tax, RO 631 million from VAT, and RO 84 million from excise tax.
Additionally, the Tax Authority is advancing its technological capabilities with the implementation of electronic invoicing, the “Ta’akad” application, a tax risk management system, and the adoption of artificial intelligence technologies aimed at enhancing operational efficiency and compliance.
The Director-General also highlighted that, by 2025, approximately 39 agreements to avoid double taxation had been signed, reinforcing Oman’s commitment to fostering a fair and integrated tax environment.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s introduction of a VAT refund service for tourists signals a strategic move to boost tourism-driven retail and services, creating new revenue streams and enhancing visitor spending. The rapid increase in tax registrants and adoption of advanced technologies like AI and electronic invoicing demonstrate a progressive shift toward tax system modernization, offering entrepreneurs opportunities in fintech and compliance solutions. Smart investors should consider positioning themselves in sectors aligned with tourism growth and digital tax services to capitalize on evolving regulatory landscapes.
