Oman introduces VAT 2018
- 19 May 2016 | Richard Asquith
Oman has confirmed it will introduce VAT in 2018. This is along with the five other members of the Gulf Co-operation Council (GCC).
The heavy fall of the global price of oil in the past two years has forced Oman to diversify its government revenues away from oil duties. It is estimated a 5% Oman VAT rate could generate RO250 million per annum for the state.
All of the GCC states have agreed upon a harmonized regime to facilitate cross border trade with reduced likelihood of double taxation or a complex compliance burden. The states have also agreed to zero-rate many essential foodstuff, health and education services. Some financial services are expected to be exempted, too.
Confirmation of the launch date and legislation is expected by July 2016.
The GCC states are: Oman; Saudi Arabia; Qatar; Kuwait; UAE and Bahrain.