VAT’s UP

Oman Exempts EVs from VAT

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Muscat August 15 2023:

Oman will exempt electric vehicles and parts from value-added tax (VAT), customs tax and registration fees, starting July 1, to encourage more adoption.

According to the Tax Authority (TA), zero VAT on EVs will be applicable under specific conditions, including the car must be equipped with a fully electric motor or hydrogen-powered engine, and the vehicle must be registered in the Sultanate as either an electric car or zero-emission vehicle (hydrogen) in compliance with prescribed procedures.

Additionally, the EV must meet the specifications and standards approved in Oman. Purchase of the EV and its spare parts must be from a person or entity holding a registered VAT account in the country. Oman also plans to increase the number of electric vehicles by converting public transport, and installing more public chargers according to the ministry of transport’s carbon reduction program.

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