Oman confirms VAT refund for armed forces

Dubai: Oman’s Tax Authority has announced a significant amendment to its VAT regulations, extending VAT refund eligibility to the country’s armed and security forces. The new regulation, Decision No. 81/2025, was introduced to cover VAT paid on purchases by the armed forces, including on military equipment, weapons, ammunition, transport vehicles, spare parts, and accessories.

This amendment expands the scope of VAT refund eligibility, which was originally introduced in 2020, to now cover six categories of entities.

Under the new rules, armed and security forces in all sectors are entitled to claim VAT refunds on their local purchases related to their operational needs.

The new regulation specifies that VAT refund applications must be submitted every three months, with a minimum claim amount of OR15.

Each application must include the relevant tax invoice or simplified tax invoice, along with proof of payment from the applicant’s bank account.

The Tax Authority is required to make a decision on each request within 30 days of receiving all necessary documentation. If no response is issued, the request is automatically deemed rejected. Once approved, the refund must be returned to the applicant within 15 days.