Finance & Capital Market

Oman Ruler issues law to implement VAT

Oman's Ruler His Majesty Sultan Haitham Bin Tarik has issued a Royal Decree on the implementation of the Value Added Tax Law.
The law states that Value Added Tax (VAT) will come into effect 180 days after its publication in the Official Gazette.
The Chairman of the Tax Authority shall issue the executive regulation (bylaw) for the VAT Law within a period of not more than 6 months from the date of its enforcement. He shall also issue the decision necessary for implementation of its provisions.
The VAT on consumption will be applied in the Sultanate at a basic rate of 5 percent.
This tax will be imposed on most goods and services (with specific exceptions in the law and regulations) at every point of sale, that is, at every stage of the supply chain, and it will also be imposed on the import of goods into the Sultanate with specific exceptions in the law and regulation as well.
The list of goods and services exempted from the VAT includes healthcare, education, financial services, basic foodstuffs and supplies for the disabled, among other items and services.