VATLive > Blog > Oman > Oman 5% VAT launch early 2021

Oman 5% VAT launch early 2021

  • Jan 22, 2020 | Richard Asquith

Oman’s Commerce Minister has confirmed that Value Added Tax will not be introduced until at least early 2021.

The postponement had already been disclosed in a July 2019 bond prospectus. It is due to slow economic performance and low consumer sentiment. Oman’s credit rating is now set at ‘junk’ by some of the major credit agencies, and the country’s deficit may reach 10.6% this year. Much of the country’s problems are down to the continuing supressed oil price which is around $60 per barrel.

Despite the delay in introducing a VAT regime, some excise taxes have been implemented in the past twelve months.

In 2018, all six of the Gulf Cooperation Council states agreed to introduce a harmonised 5% VAT regime and customs union. So far, only Saudi Arabia, UAE and Bahrain have proceeded.


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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