VATLive > Blog > VAT > Oman to launch VAT 2017 - Avalara

Oman to launch VAT 2017

  • VAT
  • 19 January 2016 | Richard Asquith

Oman to launch VAT 2017

Oman looks set to become the first of the six Arab Gulf states to introduce VAT with plans for a mid-2017 launch.

The long-planned introduction of Value Added Tax has been accelerated by the collapse in the global oil price. Prices have now dipped to below $30 per barrel compared to over $100 18 months ago. Oman, and other oil-dependent states, are being forced into looking to diversify their tax revenues away from oil duties into broader tax streams.

The news came from a member of the state’s Economic Committee this week, and mentioned that the implementation may come even earlier. Members of all six of the Gulf Co-Operation Committee have speeded-up agreement on a regional VAT regime that would encourage cross-border trade. Many states have recently declared a will to launch their VAT regimes in 2018 or 2020.

The expected VAT rate will be 3% to 5%, with exemptions for basic foodstuffs and potentially financial services.

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.