VAT Treatment of Real Estate in Oman

Oman applies a standard VAT rate of 5% to all taxable goods. This also applies to the transfer of real estate. Although VAT is applicable, the different classifications of real estate make it difficult to apply. Oman’s Value Added Tax Law exempts certain types of real estate supplies from VAT, making it more difficult to collect VAT. Therefore, businesses need to understand the guidelines and regulations of the Omani Tax Authority.

Let’s start by defining real estate according to the guidelines of the tax authorities.

Real Estate in Oman VAT
Real estate generally refers to specific land, buildings, structures or engineering works that are permanently attached to real estate, including any goods associated with the land, buildings, structures or engineering works. means.

This definition means that rights to buildings attached to undeveloped land are included. In Oman, parking lots and hospitals are also included in his VAT on tax-exempt properties. However, certain real estate supplies, such as undeveloped land, are exempt from VAT.

Anything that is not attached or attached but not of a permanent nature is excluded from the VAT’s jurisdiction, as per the definition, which states that a building or structure must be permanently attached to the land. VAT will not apply to, for instance, temporary housing that may be moved without causing harm, furniture and equipment that are not permanently affixed to the building, or any other structure of a similar nature.

You can also Register for Corporate Tax Registration on our website:

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