VAT Regulations Issued in Oman; VAT to Contribute 1.5% of Oman’s GDP

Value-Added Tax (VAT) is scheduled to come into effect in Oman on the 16th of April 2021. With around a month to go, the Government of Oman has issued regulations on how VAT is to be collected. These include all procedures surrounding bringing the provisions of the VAT law into effect, such as procedures for payment, registration and collection as well as for raising objections or concerns in relation to taxes imposed.

Why it matters?

VAT is forecast to bring in about OMR 400 million to Oman per annum, which amounts to about 1.5% of Oman’s gross domestic product (GDP). All financial services under Islamic banking procedures will be tax-free, as long as they are handled by those licensed to carry out these operations. Aside from Islamic banking,...