Oman's Tax Authority published Decision 223/2026 in Official Gazette Issue 1667 on September 27, 2026, setting a 0% value added tax rate on supplies of veterinary medicines and veterinary medical equipment listed in its annex. Issued by Tax Authority Chairman Nasser bin Khamis bin Ali Al Jashmi under the Value Added Tax Law (Royal Decree 121/2020), the decision takes effect on October 1, 2026.
Omani importers, distributors, veterinary pharmacies and clinics, and other suppliers of veterinary medicines and equipment registered for value added tax must reclassify the listed products to 0% in invoicing, VAT returns and input-VAT recovery by October 1, 2026, or face the VAT Law's penalty regime of tax plus penalties. The zero rate applies only to goods released with a clearance permit from the Ministry of Agricultural, Fisheries and Water Resources under the customs codes set out in the annex.
What does Decision 223/2026 change?
Article 1 of the decision zero-rates supplies of veterinary medicines and veterinary medical equipment that are released for import with a permit from the Ministry of Agricultural, Fisheries and Water Resources and classified under the customs tariff codes listed in the annex. Oman's standard VAT rate is 5%, set by the VAT Law (Royal Decree 121/2020) in force since April 16, 2021; the listed veterinary goods move from that standard rate to 0% from October 1, 2026.
The annex runs to 62 customs tariff codes and covers veterinary vitamins (A, B1, B2, B12, C, E, D3, H), veterinary antibiotics such as penicillin and streptomycin, vaccines, sera and immunological products, hormones, animal toxins, and veterinary medical preparations such as surgical gels and medical solutions. A zero rate is distinct from an exemption: the supplier charges 0% output VAT and keeps the right to recover input VAT incurred on related purchases.
| Product category | Example customs code | What it covers |
|---|---|---|
| Veterinary vitamins | 293621000902 | Vitamin A and derivatives for veterinary use |
| Veterinary antibiotics | 300410000002 | Penicillin for veterinary use |
| Veterinary vaccines | 300242000000 | Vaccines for veterinary medicine |
| Other veterinary medicines | 300490920000 | Hormones, medical solutions and other veterinary preparations |
| Veterinary medical preparations | 300670200000 | Gels and lubricants for veterinary surgical use |
Who must reclassify supplies, and by when?
The change binds every VAT-registered supplier of the listed goods selling into Oman: importers, distributors and wholesalers, veterinary pharmacies, and veterinary clinics that supply medicines and equipment. Suppliers below the OMR 38,500 registration threshold sit outside the VAT system and are unaffected, but registered suppliers must apply the new rate from October 1, 2026.
Eligibility turns on two conditions working together: the product must match one of the annex's customs codes, and it must be released with a Ministry of Agricultural, Fisheries and Water Resources clearance permit. Suppliers should map their product master data to the annex codes before the effective date, because the customs code is the operational key the Tax Authority uses to identify zero-rated veterinary supplies.
What to do before October 1, 2026
- Map each veterinary medicine and equipment SKU to the annex's customs tariff codes and flag the zero-rated items in the billing and ERP systems.
- Update invoicing to charge 0% output VAT on the listed goods from October 1, 2026, and confirm the clearance permit condition for each eligible line.
- Adjust VAT return preparation so the zero-rated veterinary supplies are reported in the correct boxes, and recover the input VAT incurred on purchases related to those supplies.
- Brief the tax, accounting and procurement teams on the customs-code mapping and the permit condition so eligible goods are not invoiced at 5%.
What happens if the wrong rate is applied?
Supplies invoiced at the wrong VAT rate and incorrect VAT returns trigger the penalty regime of the VAT Law: the tax due plus penalties. A 0% rate preserves input-VAT recovery, so the error cuts both ways and is visible on a VAT return review: over-charging 5% over-collects from the customer, while missing the zero-rating forfeits the input-VAT recovery the supplier is entitled to. Continuous, per-jurisdiction real-time monitoring surfaces an Omani Tax Authority decision the moment it publishes in the Official Gazette, so the reclassification can start before the effective date.
Verify which of your veterinary SKUs match the annex codes, confirm the clearance permit condition applies, and have the invoicing and VAT-return changes ready before October 1, 2026. Obsidian tracks Omani tax developments as they publish, so your team can act before the rate change takes effect.
