The Sultanate of Oman announced the imposition of a value-added tax at a rate of 5% according to a royal decree, to be applied 180 days after the date of the decree's publication in the Official Gazette. The executive regulations will be issued Two months later.
The Oman News Agency stated that this tax will be imposed on most goods and services with specific exceptions in the law and regulation at every point of sale, that is, at every stage of the supply chain, as well as It will impose on importing goods to the Sultanate, with specific exceptions in the law and regulations.
the sectors of healthcare, education, financial services, basic foodstuffs, and supplies for people with disabilities will not be subject to VAT.
It is expected that the impact of the value-added tax on the cost of living will be limited, especially since the rate that will be applied in the Sultanate is considered low when compared to that applied in other countries around the world. Which means that the impact of this tax on the prices of goods and services will be insignificant.
and the unified agreement for value-added tax for the countries of the Gulf Cooperation Council, which was signed by the member states of the Council in November of 2016, defined the principles on which the local law will be based Country, while allowing each country to choose different tax treatments in some cases specified in the agreement.
It is reported that value-added tax has been applied in more than 160 countries, and global rates range between 5% and 27%.
