Oman denies delay of VAT till 2021
- Jul 29, 2019 | Richard Asquith
The Arab Gulf state of Oman's Ministry of Finance has denied reports today of a delay in the implementation of a 5% VAT regime until 1 January 2021.
The potential postponement, disclosed in a bond prospectus, is due to slow economic performance and low consumer sentiment. Oman’s credit rating is now rates ‘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 VAT regime and customs union. So far, only Saudi Arabia, UAE and Bahrain have proceeded. Oman was scheduled to be the next in September 2019.
Sign up for our free newsletter stay up-to-date with the latest tax news.
Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.