Further clarity awaited on VAT for Oman’s oil and gas industry
Oil & Gas activities will be zero-rated for Value Added Tax (VAT) only for the upstream and midstream segments of Oman’s hydrocarbon business — a key source of revenue for — Omani economy.
According to tax experts of leading multinational professional services network PwC, downstream elements of the business — encompassing refining and petrochemicals — are likely to be standard rated at five per cent VAT, going by the Executive Regulations issued by the Tax Authority recently.
The tax experts however hastened to stress that further clarity on the applicability of VAT for the Oil & Gas industry when sector-specific tax guides are issued by the Tax Authority ahead of the formal implementation of VAT starting from April 16, 2021.