Oman Plans VAT Refund Scheme for Tourists to Boost Travel Spending

Muscat, The Gulf Observer: The Tax Authority has announced plans to introduce a Value Added Tax (VAT) refund system for tourists, a move expected to enhance Oman’s attractiveness as a travel destination and encourage higher visitor spending.

Speaking during the Authority’s first media briefing held in Muscat, a senior official said the government is working toward implementing a VAT refund service for tourists, following negotiations with service providers on applicable costs and refund percentages.

“The government will implement a service to refund the value-added tax to tourists after reaching an agreement with the companies that provide these services in terms of cost and percentage,” the official said.

The announcement was made as part of a broader presentation reviewing the tax system’s performance, recent developments and future plans during the media session.

During the briefing, the Tax Authority also confirmed that it had successfully met its revenue targets for 2025, in line with estimates approved for units of the State’s administrative apparatus under the general budget. Total current revenues were estimated at approximately OMR 1.373 billion.

Officials noted that the proposed VAT refund mechanism would bring Oman in line with international best practices adopted by major tourism destinations, where tax refund schemes are widely used to stimulate tourist spending and enhance competitiveness in the global travel market.