On the 12th October 2020, His Majesty, the Sultan of Oman, Sultan Haitham bin Tariq bin Taimur, issued Royal Decree No.121/2020 to implement VAT in Oman at 5% from April 2021. Oman will be the fourth GCC State to introduce VAT, after UAE, KSA, and Bahrain. With less than 6 months to go, this latest announcement means that all businesses in Oman
must assess the potential impact of VAT on their business and determine their VAT implementation plans. With the expected release of the VAT Executive Regulations in December 2020, all business should complete their VAT implementation and be prepared to charge and account for Value Added Tax on their supplies from day one.
Oman’s VAT regime follows the Common VAT Agreement of the States of the Gulf Cooperation Council but does have a few deviations from what we have seen implemented in UAE, KSA, and Bahrain.
Source GCCFintax
