Oman’s Value Added Tax Implementation Date Uncertain due to COVID-19: Pinsent Masons Middle East

Previously anticipated to roll out its value added tax (VAT) scheme in 2021, tax expert Joanne Clarke, Tax Director at Pinsent Masons Middle East, stated that this was now uncertain.

Analysing different scenarios, Clarke noted that a timely implementation within the first six months of 2021, could support Oman’s economic growth and stability. Speaking on the likely impacts of the VAT, Clarke stated that a standard VAT rate of 5.0%, would yield potential VAT revenue of between 1.2-1.5% of gross domestic product within its first-year of implementation.

However, addressing the negative impact of VAT on both businesses and consumers Clarke explained that businesses would see VAT...