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All that you want to know about VAT in Oman
By: Times News Service
An additional 5 percent of Value Added Tax will come into effect from April 16.
Muscat: Value Added Tax (VAT) comes into effect in Oman from Friday, which will see an additional charge of 5 per cent added to a number of goods and services purchased by customers in the country.
VAT, governed by Royal Decree No. 121/2020, is expected to add about OMR400 million in revenue to the country every year, which amounts to about 1.5 per cent of the national gross domestic product (GDP).
It became a law after the signing of Decision No. 53/2021, issued by Saud Nassir Al Shukaili, the Chairman of the Tax Authority.
Muscat: When Value Added Tax (VAT) law comes into force in Oman on April 16, 2021 following a Royal Decree, the Sultante will become the fourth GCC member state - after the UAE, Saudi Arabia and Bahrain - to introduce the levy.
The country will apply VAT at the standard rate of 5 per cent on most goods and services, with exceptions for essential food items, medical care, education and financial services. According to Oman’s Tax Authority chairman Saud Nassir al Shukaili, this should raise around OMR 400 million (Dh3.8 billion), equivalent to around 1.5 per cent of gross domestic product (GDP). The introduction of VAT is also in line with Muscat’s commitment to the Oman Vision 2040 programme, which aims to diversify the economy away from oil towards non-oil sectors such as logistics, manufacturing and tourism.
By: Times News Service
With about a month left for VAT implementation, regulations on collection of the tax have been issued.
Muscat: While value added tax (VAT) is expected to come into effect in Oman on April 16, 2021, a number of goods and services have been granted exemption.
VAT is expected to contribute about OMR400 million to the economy every year, about 1.5 per cent of the country’s gross domestic product (GDP), and with about a month left before VAT is brought in, the regulations regarding how the tax will be collected have been issued.
Saud Nassir Al Shukaili, Chairman of the Tax Authority, on Sunday issued Decision No. 53/2021 promulgating VAT Law’s executive regulation, based on the provisions of Royal Decree No. 121/2020 on VAT Law.