Oman to Implement 5% VAT Within Six Months

October 13, 2020

The Sultan of Oman, Haitham bin Tariq Al-Said, issued a decree on the 12th of October 2020 to implement a 5% value-added tax (VAT) within the next six months.

According to Oman News Agency, the VAT law would be imposed on most goods and services, with some exceptions. The VAT will be applicable fully on tobacco and its derivatives, energy drinks, alcoholic beverages and pork, while 50% will be applied to soft drinks based on retail price.

The Government of Oman has stated that the VAT implementation will have a ‘limited impact’ on the cost of living. Originally intended to be imposed in 2018, the 5% VAT was postponed until 2020, media reported.