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June 26, 2026

Transportation

VAT Taxpayer Guide

Version 1 | June 2023

Contents

1. Introduction

  1. 1.1. About This Guide

  2. 1.2. Who Should Use This Guide?

  3. 1.3. Definitions

2. Registering for VAT

3. Applying VAT to Transportation: Place of Supply

  1. 3.1. Place of Supply of Transport Services

  2. 3.2. Place of Supply of Transport-Related Services

  3. 3.3. Place of Supply of Goods

  4. 3.4. Leasing of Means of Transport

4. The VAT Treatment of Passenger Transportation

  1. 4.1. Local Passenger Transportation

  2. 4.2. International Passenger Transportation

  3. 4.3. Services Related to International Passenger Transport

  4. 4.4. Goods for Use or Consumption on International Transport

  5. 4.5. Travel Packages

  6. 4.6. Travel Agents

5. The VAT Treatment of Freight Transport

  1. 5.1. Domestic Freight Transport

  2. 5.2. International Freight Transport

  3. 5.3. Services Related to International Goods Transportation

  4. 5.4. Fuel and Other Goods Used During International Transport

6. Means of Transportation

  1. 6.1. Supply of Qualifying Means of Transportation

  2. 6.2. Goods and Services Related to Qualifying Means of Transportation

  3. 6.3. Rescue and Assistance Craft

7. Input Tax

  1. 7.1. Overview of Input Tax Deduction

  2. 7.2. Proportional Deduction

8. VAT Obligations

  1. 8.1. Charging VAT

  2. 8.2. The Tax Due Date

  3. 8.3. Issuing Tax Invoices

  4. 8.4. Filing Tax Returns

  5. 8.5. Keeping Records

  6. 8.6. Correcting Past Errors

Introduction

About This Guide

This guide has been issued to provide explanations of VAT rules and principles in Oman, in addition to provide interpretation and guidance for the application of the VAT Law and its corresponding Executive Regulations to the transportation sector.

This is strictly a guideline and may not include some relevant legislative provisions from the VAT legislation. This guide is not binding on the TA, or on any taxpayer in respect of any transaction carried out, and it cannot be relied upon in case of dispute.

For further guidance on specific transactions, or for matters not addressed by this guide, please get in touch with the TA.

General information about VAT can be found in the VAT portal of the TA website: www.taxoman.gov.om.

Who Should Use This Guide?

You should read this guide if you make supplies of transportation, including either transport of passengers or transport of goods (freight transport). You should also read this guide if you make supplies relating to qualified means of transport.

Definitions