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June 26, 2026

Oil & Gas

VAT Taxpayer Guide

Version 1 - January 2022

Contents

1. Introduction

  1. 1.1. Purpose

  2. 1.2. VAT in Oman

  3. 1.3. Sultanate of Oman's Tax Authority ('TA')

2. Relevant Legal Provisions of VAT Law and VAT Executive Regulations

  1. 2.1. VAT Law Article 51 (7)

  2. 2.2. Executive Regulations Article 93

  3. 2.3. Clarifications on Article 93

3. Definitions

4. Oil & Gas Sectors

  1. 4.1. Upstream

  2. 4.2. Midstream

  3. 4.3. Downstream

  4. 4.3.1. Clarification of Transportation and Storage amongst the Activities

5. VAT Treatment of Upstream Activities

  1. 5.1. Supplies of Unrefined Crude Oil and Natural Gas

  2. 5.2. Upstream Activities

  3. 5.3. Application of VAT to the Upstream Activities in Oman

  4. 5.4. VAT Treatment on Transactions Related to Government

  5. 5.5. VAT Treatment on Transactions Between JV Partners

  6. 5.6. VAT Treatment on Transactions Between Operator & Affiliated Entities

  7. 5.7. VAT Treatment on Transactions Between Upstream Operators

  8. 5.8. VAT Treatment on Transactions Between Operators and Contractors/Suppliers

  • 6. VAT Treatment of Midstream Activities

    1. 6.1. VAT Considerations for Midstream

    2. 6.2. Midstream Activities and VAT Flows

    7. VAT Considerations for Downstream Activities

    1. 7.1. Supplies for Domestic Consumption

    2. 7.2. Exports from Oman

    3. 7.3. Consignment or Reserve Stocks

    4. 7.4. Aviation and Marine Fuels

    8. General Provisions

    1. 8.1. Place of Supply

    2. 8.2. Imports of Goods and Equipment to Oman

    3. 8.3. Invoicing

    4. 8.4. Reporting VAT Returns

    5. 8.5. VAT Payments/Refunds

    6. 8.6. Bank Guarantee for Imports to be Re-exported

    7. 8.7. Records & Auditing/Inspections by TA

    8. 8.8. Administrative Penalties

    Introduction

    Purpose

    This guide is issued by the Sultanate of Oman Taxation Authority ('TA') to provide additional interpretation and guidance for the application of the VAT Law and its corresponding Executive Regulations to the Oil and Gas Industry in Oman. It also clarifies important practical aspects for the industry in Oman. This guidance does not replace or override any contents of VAT Law and/or its Executive Regulations.

    This guide is strictly an interpretative aid. It intends to cover the main issues applicable to the sector but does not purport to be a complete overview: the guide may not include some relevant legislative provisions in relation to supplies of Oil and Gas from the VAT legislation. This guide is not binding on the Tax Authority, in respect of any transaction carried out, and it cannot be relied upon in case of dispute. In case of doubts or inconsistencies, taxpayer should immediately seek Tax Authority's directives.

    Legislative material and guides in this area have the following order of precedence: