Dubai: Oman is all set to implement the Value Added Tax (VAT) on April 16, it was confirmed on Sunday by the Oman News Agency (ONA).
The VAT is expected to raise about 400 million Omani riyals annually and to generate approximately 1.5 percent of the value of GDP.
Saud bin Nasser Al Shukaili, Head of the Tax Authority, emphasized that all necessary preparations and requirements for the VAT implementation have been put in place including the issuance of tax-related legislations, operating the tax computer system, and electronic linking with the authorities concerned.
The Heath of Tax Authority also approved the Executive Regulations for the Value Added Tax (VAT) Law.
The 5 per cent tax will be imposed on most goods and services, with the exemption of a specific set of goods and services, rendered to consumers at outlets throughout the Sultanate. It will also be imposed on imports of goods to the sultanate, except the ones exempted by law.
The list of goods and services exempted from the VAT includes healthcare, education, financial services, and basic food items and supplies for persons with special needs, among other items and services.
“All the necessary preparations and requirements for the implementation of the value-added tax decided on April 16 have been completed in terms of issuing legislation related to tax, operating the tax computer system, and electronic linking with the authorities concerned with the application and strengthening the human cadre in the agency,” Al Shukaili said.
According to Al Shukaili, VAT will approximately generate 1.5 percent of the value in GDP. “OMR 400 million is expected to be collected annually from the application of this tax,” he added.