Sunday 21 October 2018

Oman to delay VAT implementation to 2019

MUSCAT, December 27, 2017

Oman will delay the implementation of Value Added Tax (VAT) in the sultanate to 2019, the Ministry of Finance has been quoted as saying. 
The application of selective tax on tobacco, energy and carbonated drinks could be introduced by the middle of next year, according to a report in the Times of Oman.
Earlier, the plan was to introduce VAT in all GCC states simultaneously in January 2018 as per a GCC agreement. 
Now only Saudi Arabia and the UAE are set to introduce a 5 per cent VAT from January 1, 2018, while four other states – Oman, Kuwait, Bahrain and Qatar - have not yet announced a date to begin collecting the tax, the report said.
The VAT is expected to generate OR300 to  OR400 million per year for the Oman government, which is more or less equivalent to the corporate tax, the report said.
Implementation of VAT involves the enactment of the VAT law, launching of VAT-friendly accounting systems by companies, training of employees, etc.

Tags: Oman | tax | VAT |

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