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Oman introduces VAT 2018

  • VAT
  • 19 May 2016 | Richard Asquith

Oman introduces VAT 2018

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.

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 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.