MUSCAT: Oman will introduce the Value Added Tax (VAT) from April 2021, according to a Royal Decree issued by His Majesty Sultan Haitham bin Tariq on Monday said.
Also Read: Oman set to implement 5% VAT in 2021
Oman will be the fourth of six Arab Gulf states to introduce VAT as part of a 2016 VAT union agreement. According to the Oman Tax Authority, the 5% tax which will be rolled out in six months, will be levied on most goods and services, with some exceptions.
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The Government Communication Centre has published a wide list of goods and services that are not covered by VAT.
Following are the goods and services exempted from VAT:
1- Basic food commodities.
2- Medical care services and related goods and services.
3- Education services and related goods and services.
4- Financial services.
5- Undeveloped lands (vacant lands)
6- Resale of residential properties.
7- Passenger transport services.
8- Renting real estate for residential purposes.
9 – Supply of medicines and medical equipment.
10- Supply of investment gold, silver and platinum.
11- Supplies of international transport and interchange of goods or passengers and the supply of related services.
12- Supply of rescue and aid aircraft and vessels.
13-Supply of crude oil, petroleum products and natural gas.
14- Supplying means through sea, air and land transport for the transport of goods and passengers for commercial purposes and the supply of goods and services related to transport.
15- Supplies for people with disabilities and charities.
