It is confirmed that in the beginning of the year 2021 , Oman will be applying five percent Value Added Tax . In the year 2018 all the six states in the Gulf Cooperation Council agreed to introduce a five percent VAT regime and customs union. Only Saudi Arabia , UAE , and Bahrain had proceeded with this so far. The Oman Tax Authorities are successfully tagging along with their preparations in order to be ready for the VAT implementation within a fixed time slot. The preparation for introducing VAT demands a precise and timely manner of planning.
According to official sources , Oman was targeting an annual economic growth of 2.5 to 3 percent and looking into tourism, manufacturing,logistics,fisheries etc as a means to spread out their economy from the oil industry. According to the terms mentioned in Unified Agreement , VAT will be applicable to goods and services at the standard rate of five percent.
The advantages of implementing VAT in OMAN
- Fund utilization for public welfare : The revenue obtained will be utilized for projects benefiting the public. Proper health facilities , road construction and other related infrastructures are taken into serious consideration.
- Economic Diversity : The areas of revenue generation will be expanded since the economy will be boosted with the introduction of VAT. This will help the government since it aids in minimizing the fixation in the gas and oil sector.
- Sense of spending : Imposing VAT creates a sense of spending in people since it would make them utilize their purchasing power for only essential items.
A highly experienced team of VAT professionals can guide you in the VAT implementation process. We at GSPU Oman offer all types of VAT services so that you can do everything hassle free.
