MUSCAT: Oman is all set to implement Value Added Tax (VAT) on April 16, the Head of Tax Authority confirmed on Sunday.
In a statement issued to Oman News Agency (ONA), His Excellency Saud bin Nasser Al Shukaili said all the necessary preparations and requirements have been completed to implement VAT. The 5% tax will be imposed on most goods and services, with the exemption of a specific set of goods and services, rendered to consumers at outlets throughout the Sultanate. It will also be imposed on imports of goods to the sultanate, except the ones exempted by law.
The list of goods and services exempted from the VAT includes healthcare, education, financial services, and basic food items and supplies for persons with special needs, among other items and services.
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“All the necessary preparations and requirements for the implementation of the value-added tax decided on April 16 have been completed in terms of issuing legislation related to tax, operating the tax computer system, and electronic linking with the authorities concerned with the application and strengthening the human cadre in the agency,” Al Shukaili said.
According to Al Shukaili, VAT will approximately generate 1.5 percent of the value in GDP. “OMR 400 million is expected to be collected annually from the application of this tax,” he added.
