Oman: 5% VAT to come into force within 180 days

- Advertisement -

The Value Added Tax (VAT) will be imposed in the Sultanate within 180 days from the date of publication of Royal Decree No. 121/2020 in the Official Gazette. By then, Oman will join 160 other countries in the world that impose the VAT.

This tax will be imposed on most goods and services (with the exemption of a specific set of goods and services) rendered to consumers at outlets throughout the Sultanate. It will also be imposed on imports of goods to the Sultanate, except the ones exempted by law.

The business sector will serve as a collector of tax in the Sultanate and it will only bear the cost of imposing the VAT, collecting it, claiming it and adhering to it as per the law and bylaw. Taxpayer establishments will add the VAT on taxable goods and services, while the end consumer of goods and services will bear the VAT cost.

READ  Up Close and Personal: The Bahrain VAT Law

The business sector is required to register for VAT. To meet the target, its establishments have to operate a competent system of accountancy and billing, besides maintaining accurate accounting registers.

The impact of VAT on cost of life is expected to be limited, since Oman implements the lowest rate of such tax whose effect on goods and services will almost be imperceptible.

The list of goods and services exempted from the VAT includes healthcare, education, financial services, basic foodstuffs and supplies for the disabled, among other items and services.

READ  Oman: Tyre Burst Cancels All Flights In Salalah Airport

As per the VAT Law, the business sector has to explain the rate of value of this tax to be borne by the consumer against the procurement of goods and services at business outlets.

It has to provide necessary information that help the consumer select certain goods and services.  The regulations require that the VAT shall be stated in a business establishment’s bills.

Comments

- Advertisement -