Oman Observer
The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced that the Special Economic Zone at Duqm (SEZAD) and the free zones in Salalah, Sohar, and Al Mazunah are classified as (Special Zones) in accordance with the provisions of Article (102) of the Executive Regulations of the Value Added Tax (VAT), issued in the Decision No (53/2021). This announcement comes to post the coordination with the Tax Authority in regards to the implementation of VAT. In accordance with the conditions specified in Article (103) of the Regulations. All these special zones are subject to (0%) tax.
OPAZ declared today in a press release that the provisions of Article (54) of the VAT Law (Royal Decree No (121/2020) stipulates that supplies of goods or services to or from the Special Zones, or within them, may be zero-rated, following the conditions laid down in Articles of (101), (102), (103), (104), (105), (106) and (107) of the VAT Executive Regulations.
Therefore, OPAZ calls on all companies, enterprises, businesses, and establishments operating in these zones to comply with the conditions stipulated in the VAT Executive Regulations, until the Tax Authority of Oman publishes detailed procedures for the purposes of applying VAT at a rate of zero percent in the Special Zones. These conditions include VAT Registration and VAT Administration.