Complete List of Zero-Rated Products under Oman VAT (2025 Update)
Comprehensive Guide by Ariotax – Oman’s Leading Tax and Accounting Firm
Since the implementation of Value Added Tax (VAT) in the Sultanate of Oman on April 16, 2021, businesses have been required to understand how VAT applies to their goods and services. Under Oman’s VAT Law, certain goods and supplies are classified as zero-rated, meaning that VAT is applied at a rate of 0%, while still allowing suppliers to reclaim input tax on related purchases.
At Ariotax, our team of tax professionals helps businesses across Oman remain compliant with VAT regulations. Whether you are managing imports, distribution, or retail operations, understanding which products fall under the zero-rated category is essential for accurate invoicing and tax recovery.
This article provides a complete and updated list of zero-rated products in Oman (2025), supported by official decisions and HS codes, along with professional insights from Ariotax.
Understanding Zero-Rated VAT in Oman
A zero-rated supply means that the VAT rate applied to the sale is 0%, but the supplier retains the right to reclaim input VAT on expenses incurred for that supply. This is different from exempt supplies, where no VAT is charged, but input tax cannot be recovered.
The Oman Tax Authority (OTA) specifies that zero-rated products primarily include basic food items, essential goods, and certain healthcare and education-related services.
Legal Framework
The zero-rated list is defined under the following legal references:
- Royal Decree No. 121/2020 – Issuing the VAT Law in Oman
- Ministerial Decision No. 2/2021 – Issuing the list of zero-rated food products
- Subsequent updates (2022–2024) – Expanding and clarifying the coverage of zero-rated items
These legal instruments establish which goods are considered essential for daily living and therefore subject to a 0% VAT rate.
Comprehensive List of Zero-Rated Products in Oman
Below is a detailed breakdown of product categories that are zero-rated for VAT purposes, based on the latest guidance from the Oman Tax Authority.
1. Meat, Poultry, and Fish
| Product | HS Code | Description |
| Broiler chicken | 01059420 | Fresh or chilled broiler chickens |
| Layer chicken | 01059410 | Fresh or chilled layer chickens |
| Beef, boneless | 02013000 | Fresh or chilled beef without bone |
| Mutton or goat meat | 02041000 | Fresh or chilled lamb and goat meat |
| Camel meat | 02045000 | Fresh or chilled camel meat |
| Fresh fish | 03028900 | Tuna, grouper, hamour, safi, and other local fish species |
Note: Frozen variants of these meats are also zero-rated, provided they are unprocessed and for human consumption.
2. Dairy Products
| Product | HS Code | Description |
| Fresh milk (over 1 litre) | 04011030 | Pasteurized milk with no added sugar |
| Powdered milk | 04021010 | Milk powder with fat content over 1.5%, unsweetened |
| Fresh yoghurt | 04031000 | Natural yoghurt without flavouring or sugar |
| Cheese | 04061000 | Fresh or unprocessed cheese varieties |
3. Eggs
| Product | HS Code | Description |
| Fresh eggs | 04071100 | Eggs of domestic fowls, in shells, fresh or chilled |
4. Fruits and Vegetables
| Product | HS Code | Description |
| Potatoes | 07019000 | Fresh or chilled potatoes |
| Tomatoes | 07020000 | Fresh or chilled tomatoes |
| Onions and garlic | 07031000 | Fresh or chilled onions and garlic |
| Carrots and cucumbers | 07061000 | Fresh or chilled vegetables |
| Dates | 08041000 | Omani dates, fresh or dried |
| Oranges and lemons | 08052000 | Citrus fruits, fresh |
| Mangoes, pineapples, pomegranates | 08045000 | Fresh or chilled tropical fruits |
5. Cereals and Grains
| Product | HS Code | Description |
| Wheat | 10019910 | Ordinary wheat |
| Rice | 10063000 | Semi-milled or fully milled rice |
| Wheat flour | 11010000 | Milled wheat flour |
6. Tea, Coffee, and Spices
| Product | HS Code | Description |
| Coffee beans (raw or roasted) | 09011100 | Non-decaffeinated coffee beans |
| Green and black tea | 09021000 | Tea in bulk or limited retail packs |
| Cardamom | 09083000 | Whole or ground cardamom pods |
7. Cooking Oils and Sugar
| Product | HS Code | Description |
| Virgin olive oil | 15091000 | Cold-pressed olive oil |
| Refined sugar | 17019911 | White crystalline sugar, not containing flavouring or colouring |
8. Baby Food and Infant Formula
| Product | HS Code | Description |
| Infant formula milk | 19011010 | Milk-based food for infants without cocoa |
| Cereal-based baby food | 19012000 | Prepared foods for infant consumption |
9. Bread, Water, and Salt
| Product | HS Code | Description |
| Bread | 19059030 | Plain bread, white or brown |
| Drinking water | 22011000 | Still or mineral water |
| Table salt | 25010000 | Edible salt, refined or unrefined |
HS Code Summary Table (Top 10 Examples)
| No. | HS Code | Product | Category |
| 1 | 01059410 | Layer chicken | Poultry |
| 2 | 02013000 | Boneless beef | Meat |
| 3 | 04011030 | Pasteurized milk | Dairy |
| 4 | 04071100 | Fresh eggs | Eggs |
| 5 | 07020000 | Tomatoes | Vegetables |
| 6 | 08041000 | Dates | Fruits |
| 7 | 10063000 | Milled rice | Grains |
| 8 | 15091000 | Virgin olive oil | Oils |
| 9 | 17019911 | Refined sugar | Sweeteners |
| 10 | 19011010 | Infant formula | Baby Food |
Key Notes for Businesses
Businesses supplying zero-rated goods should take into account the following:
- Accurate HS Code Mapping:
Always ensure that the exact HS code matches the one listed under Oman’s official zero-rated register. Misclassification can lead to VAT errors and penalties. - Proper Documentation:
Maintain detailed invoices and import records showing the nature of the goods, freshness, and absence of additives, where applicable. - VAT Return Filing:
Even if most supplies are zero-rated, businesses must still file periodic VAT returns and maintain input VAT recovery documentation. - Continuous Updates:
The Oman Tax Authority occasionally revises and expands the zero-rated list. Ariotax continuously monitors regulatory updates to help clients stay compliant.
Impact on Consumers
The zero-rating of essential goods such as meat, rice, fruits, vegetables, milk, and baby products ensures that daily living costs remain affordable for Omani residents and expatriates.
Consumers benefit from lower prices on basic food items, while businesses maintain competitive pricing without VAT burden.
How Ariotax Helps You Stay Compliant
At Ariotax, we provide complete VAT Registration in Oman and Accounting Services in Oman tailored to your business sector. Our experienced consultants assist with:
- VAT registration and filing
- VAT audit preparation and documentation
- HS code classification and product verification
- Tax advisory for importers and wholesalers
- VAT refund and compliance support
For more advanced support, explore our Auditing Services in Oman designed to keep your financial records transparent and fully compliant with Oman’s Tax Authority regulations.
Conclusion
Oman’s VAT system continues to evolve, and keeping up with zero-rated product categories is crucial for every business. Understanding these classifications not only helps in setting correct prices but also protects companies from compliance risks.
With the guidance of Ariotax, businesses can confidently navigate VAT obligations, claim legitimate input tax credits, and maintain compliance with local laws.
If you deal in food imports, retail, or wholesale distribution, our expert VAT advisors are here to support you every step of the way.
Contact us today through Ariotax.com to schedule a consultation and ensure your VAT processes are accurate, efficient, and fully compliant.
