Oman, a rich Gulf country with An oil-based economy, has launched and implemented a VAT system from April 2021. However, this extra VAT may affect tourists' pockets, especially in the case of luxury items. So, the country's government has taken the initiative to refund VAT for tourists. Oman has impressive foreign tourism, but VAT can lower the purchases by tourists, which plays a significant role in boosting the economy. To avoid this, the Sultanate Of Oman has launched a scheme under which tourists will receive VAT refunds. However, there are certain criteria & conditions for enjoying the scheme, and professional agencies like Excellence Audit & Accounting Service can guide you. Let's dig deep into VAT Refunds For Tourists In Oman and cover everything you want to know.
What is VAT Refund Scheme For Tourists In Oman
As its name implies, the VAT Refund Scheme For Tourists in Oman deals with the reduction of overall shopping expenditure done by tourists by offering VAT refunds. Oman has now introduced VAT on all items across all categories which resulted in a price surge. The country's markets are one of the central points of attraction among tourists, and if the prices are reasonable or less compared to the global markets, tourists don't hesitate to spend money. In such cases, local manufacturers and suppliers benefit a lot, significantly impacting the country's economy. So, to save tourists from high prices and encourage them to purchase more, Oman is pushing its VAT Refunds Scheme. Under this scheme, tourists can apply for a refund, and they will get VAT money as a refund. However, not everyone can apply for this, and not all products are under this scheme. Excellence is a highly experienced firm in Oman that knows all legal procedures and has internal links for smooth and quick approval. They offer genuine consulting to tourists so that they can save more and more without putting any effort.What is the Eligibility Criteria for Tourist VAT Refunds Scheme in Oman
Firstly, the VAT Refund scheme provides monetary leisure to foreign tourists only. It means local people can’t avail of this by any means. Now, not all tourists are eligible for this scheme. One has to meet eligibility criteria to benefit from this scheme. Here are some eligibility criteria for the VAT refund scheme for tourists in Oman- 1. A tourist must not have a residence or permanent property in Oman and GCC countries.
- 2. A tourist must not be living in Oman for more than three months.
- 3. A tourist must not be indulged in any business or operational activity in Oman.
- 4. A tourist must not be a member of an Aviation crew, merchant navy, or other transportation services.
Conditions of VAT Refund for Tourists in Oman
Once you qualify for the eligibility criteria, you can apply for a refund, but here also, you have to satisfy certain conditions; otherwise, you can't submit your application, or your application might get rejected. So, it is essential to know these conditions and then apply accordingly. Below are some important conditions- ➢ VAT Refund Scheme only applies to certain products, meaning you can't claim VAT Refund on Oil & Gas, Alcohol, Food, Beverages, Petro derivatives, and Tobacco & Cigarette.
- ➢ You must check the overall bill to see if your purchased product is eligible for a VAT refund. VAT can be claimed only if the total billing amount(exclusive of VAT) exceeds 25 RO(Omani Rials).
- ➢ The refund didn't include the transfer or other fees required during the refund process.
- ➢ The purchased items must be for personal use and should be transported with personal luggage.
- ➢ It is not allowed to hold the purchased item for more than three months in Oman; otherwise, you will lose the VAT refund.
- ➢ The VAT will be refunded only after the departure of tourists with the product.
How Tourists Can Apply For VAT Refunds For Tourists in Oman?
Step 1
The application procedure to claim a VAT refund is easy and quick if you meet all eligibility criteria and all conditions. This makes the application easy to accept. However, the process requires some time, and if followed in the right manner, your application will not be rejected. Here is the step-by-step process for claiming VAT refunds.Step 2
Once you purchase any taxable item that surpasses the minimum amount of 25 RO, you can apply online with the billing or invoice. You can quickly get the format and contents of the application from the official authority or the operator involved in the refund process.Step 3
Before departures, you have to visit the Directorate General of Customs. There, you have to verify the application along with the product for which you have claimed a VAT refund.Step 4
After the verification and inspection, your application will be approved. You are now allowed to leave the country with the product.Step 5
The authorities will initiate the refund within a specific time interval of 30 days. Now, the important thing is the percentage of the refund is the ultimate choice of the authorities. They may initiate partial or complete refunds.What is a VAT Refund For Diplomats in Oman?
Oman has launched the same VAT refund scheme for Diplomats, similar to tourists, except for some conditions. This scheme works almost the same as the VAT Refunds scheme for tourists, but the conditions are changed entirely here. Let's look at the conditions for claiming VAT under the Diplomats scheme.- ➢ The billing amount must exceed 100 RO(excluding taxes) to claim a VAT refund.
- ➢ Certain products didn't qualify for this scheme, like tobacco, Oil & Gas, Food, beverages, Alcohol, etc.
- ➢ The products must come under official and necessary usages.
- ➢ The buying of the products must fall under the condition of reciprocity.