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OMAN, 30 May 2023: The Tax Authority in Muscat has made an important announcement regarding electric vehicles (EVs) and EV parts in the sultanate. They have declared that these vehicles and their parts will no longer be subjected to value-added tax (VAT), customs tax, or registration fees. This move aims to encourage the adoption of EVs and promote sustainable transportation options in Oman.
Concurrently, the Authority for Public Services Regulation (APSR) has introduced a new regulation that specifically addresses the charging of electric vehicles. This regulation is designed to ensure safe and efficient charging infrastructure throughout the country.
Zero VAT on EVs
The Tax Authority (TA) has outlined the specific conditions for the zero VAT on EVs. Firstly, the vehicle must be equipped with either a fully electric motor or a hydrogen-powered engine. Additionally, it must be registered in Oman as an electric car or a zero-emission vehicle (hydrogen), following the prescribed procedures.
Furthermore, the EV must meet the approved specifications and standards set by the authorities in Oman. When purchasing an EV and its spare parts, it is essential to obtain them from a person or entity with a registered VAT account in Oman.
The TA has emphasized that both VAT-registered and non-registered entities can import EVs or hydrogen-powered vehicles without incurring VAT. These procedures align with the regulations established by the General Administration of Customs and the customs tariff applicable to corresponding items.
To regulate the charging infrastructure for EVs, H.E. Salem bin Nasser Saeed al Aufi, Chairman of the Board of Directors of APSR, has issued a decision (No 2023/15). This decision mandates that individuals who own or operate private or public electric charging points must adhere to the regulatory and technical requirements approved by APSR and the relevant authorities.
Under the new decision, individuals are now permitted to install private electric charging points within their residences. However, it is crucial to note that no person can install a private or public electric charging point without obtaining prior approval from the concerned electricity distribution company. This measure ensures that the charging infrastructure is installed safely and complies with the necessary standards.
The responsibility for installing and operating a private electric charging point lies with the property owner. In cases where the property is rented, the tenant must secure written consent from the property owner before installing a private charging point. Nonetheless, the property owner retains overall responsibility for ensuring compliance with regulations, even if a tenant is involved. It is important to emphasize that the law strictly prohibits the commercial use of private electric charging points.
Conclusion
The Tax Authority in Muscat has exempted electric vehicles and EV parts from VAT, customs tax, and registration fees, signaling the government’s commitment to promoting sustainable transportation options. The introduction of regulations by APSR ensures the safe and efficient operation of electric charging infrastructure. These measures aim to facilitate the wider adoption of EVs in Oman and contribute to a greener future.
