Oman: No VAT, customs or registration fee on electric vehicles

Oman: No VAT, customs or registration fee on electric vehicles

Muscat – The Tax Authority has announced that electric vehicles and EV parts will be exempt from value-added tax (VAT), customs tax and registration fee in the sultanate. Simultaneously, the Authority for Public Services Regulation (APSR) has introduced a new regulation governing charging of electric vehicles.

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 it must be registered in Oman 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 Oman.

TA emphasised that both VAT-registered and non-registered entities can import EVs or hydrogen-powered vehicles without incurring VAT. This aligns with the procedures set by the General Administration of Customs and customs tariff of corresponding items.

H E Salem bin Nasser Saeed al Aufi, Chairman of the Board of Directors of APSR, issued a decision (No 2023/15) to regulate EV chargers. The decision mandates that individuals who own or operate private or public electric