Oman Soon to Impose VAT to Shore Up Finances

Published October 13th, 2020 - 08:00 GMT
Oman Soon to Impose VAT to Shore Up Finances
The VAT will be applied on most goods and services throughout Oman. It will also be applied on imports of goods to the country, except those exempt by law. (Shutterstock)
Highlights
According to the VAT law, the business sector must provide necessary information that helps people choose certain goods and services. 
 
Oman will impose a Value Added Tax (VAT) across the country in the next 180 days, state news agency ONA reported.

The VAT will be applied on most goods and services throughout Oman. It will also be applied on imports of goods to the country, except those exempt by law.

Oman’s decision is hoped will benefit the country’s economic and social development, as well as “fueling the international competitiveness of the Sultanate because financial revenue from VAT will contribute to the establishment of sustainable economy for future generations,” the report added.

The VAT will also positively impact public services, sustained development of future infrastructure and helped generate more stable tax income, the report said.

The country’s business sector will be responsible for collecting the tax and will bear the cost of imposing the VAT and adhering to it according to the law.

Healthcare, education, financial services, basic foodstuffs and supplies for people with special needs are among items and services exempt.

According to the VAT law, the business sector must provide necessary information that helps people choose certain goods and services. “The regulations require that the VAT shall be stated in a business establishment’s bills,” the report said.

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