Oman to introduce VAT in 2018

The Omani government has announced its plans to introduce a VAT regime, previously said to be as early as 2017, it’s now believed this will come into affect on the 1st of January 2018, giving businesses more time to acclimatise.

The VAT rate is expected to come in at 5%, which although low by European standards, is expected to generate OMR250 million a year. These extra funds are needed to cover the gap caused by the recent and continued drop in oil prices which are affecting many of the Gulf states. The Omani government have also stated that they will introduce a zero rate for many essential and basic goods and services.

For more information click here (note it goes to our new Innovate Tax site)