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VAT, zero-rating and exemption codes

VAT in Oman​

Oman introduced VAT at 5% in April 2021.

CategoryRateCodeDescription
Standard5%SMost goods and services
Zero-rated0%ZExports, certain food items, medicines and medical equipment
Exempt0%EFinancial services, healthcare, education, residential rent
Z and E are not enough on their own

A zero-rated or exempt line must also carry a reason code — see Zero-rating and exemption reason codes. A Z category with no VATZR-OM-* code fails validation. On an export invoice the code must be one of the export codes — see Export invoices.

<cac:TaxCategory>
    <cbc:ID>S</cbc:ID>
    <cbc:Percent>5</cbc:Percent>
    <cac:TaxScheme>
        <cbc:ID>VAT</cbc:ID>
    </cac:TaxScheme>
</cac:TaxCategory>

Zero-rating and exemption reason codes​

A zero-rated or exempt line needs more than a Z or E category — it needs a reason code from the Oman code list. Without one, validation fails.

ListCodesUsed for
VATZR-OM-01 … VATZR-OM-1616Zero-rating reasons
VATEX-OM-01 … VATEX-OM-1212Exemption reasons
<cac:TaxCategory>
    <cbc:ID>Z</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cbc:TaxExemptionReasonCode>VATZR-OM-09</cbc:TaxExemptionReasonCode>
    <cbc:TaxExemptionReason>Export of service</cbc:TaxExemptionReason>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>

Zero-rating reason codes — CL-10-OM​

All sixteen codes, in the wording published by the Peppol Authority for Oman.

CodeMeaning
VATZR-OM-01Qualifying Supply of Food items specified by a decision from the Chairman
VATZR-OM-02Qualifying Supply of Medicines and medical equipment
VATZR-OM-03Supply of investment gold, silver, and platinum
VATZR-OM-04Supplies of international and intra GCC transport of Goods or passengers
VATZR-OM-05Supply of Services related to International and Intra GCC transportation of Goods or passengers
VATZR-OM-06Supply of qualifying air, sea and land means of transport
VATZR-OM-07Supply of rescue planes, and rescue and assistance boats
VATZR-OM-08Supply of oil, oil derivatives and natural gas
VATZR-OM-09Export of service
VATZR-OM-10Direct export of goods
VATZR-OM-11Indirect export of goods
VATZR-OM-12Re-export of goods
VATZR-OM-13Supply from a Special Zone to a Special Zone, or within a Special Zone
VATZR-OM-14Supply from Mainland to Special Zone
VATZR-OM-15Customs Duty Suspension Statuses to a Special Zone
VATZR-OM-16Special Zone to Customs Duty Suspension Statuses

Exemption reason codes — CL-05-OM​

All twelve codes, in the wording published by the Peppol Authority for Oman.

CodeMeaning
VATEX-OM-01Qualifying Financial Services
VATEX-OM-02Educational Services and Related Goods and Services
VATEX-OM-03Healthcare Services and related Goods and Services
VATEX-OM-04Rental of properties for residential purposes
VATEX-OM-05Local Passenger Transport
VATEX-OM-06Undeveloped land (bare land)
VATEX-OM-07Resale of residential properties
VATEX-OM-08Imported goods supplied to diplomatic and consular bodies, international organizations, and the heads and members of diplomatic and consular bodies
VATEX-OM-09Imports for the Armed Forces and Internal Security Forces
VATEX-OM-10Imported supplies for non-profit charities
VATEX-OM-11Import of returned goods
VATEX-OM-12Imported Goods in cases where the supply of such Goods is exempted from Tax or subject to Tax at a rate of zero percent in the Final Destination Point of Entry

Where these come from. Both lists are the Peppol Authority for Oman's own published code lists — CL-10-OM and CL-05-OM, both read on 16 September 2026. They match, row for row, the Oman Tax Authority's own "Oman eInvoicing Data Dictionary" workbook (v1.0.1), which we hold a transcription of. Where the two differ in capitalisation or phrasing, the Authority's wording above is what is published.

A wrong code is worse than a rejection

Every code in these lists is valid, so validation cannot tell you that you picked the wrong one. An invoice carrying a valid-but-wrong reason code is accepted and files a misdeclared exemption. Choose the code that actually describes the supply, and ask the Oman Tax Authority when none of them fits — do not pick the nearest.

Medicines and Ministry-of-Health-approved medical equipment are zero-rated under Ministerial Decision 59/2021, made under Articles 51–53 of Sultani Decree 151/2020. On the invoice that is VATZR-OM-02, "Qualifying Supply of Medicines and medical equipment" — not VATZR-OM-01, which is the food-items code.

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