INSIGHTS

Oman will be the fourth of six Arab Gulf states to introduce VAT as part of a 2016 VAT union agreement. The six states have agreed to implement a 5% tax on goods and services. So far, only Saudi Arabia, UAE and Bahrain have done so. Oman will introduce the Value Added Tax (VAT) from April 2021, according to a Royal Decree issued by His Majesty Sultan Haitham bin Tariq on Monday said. Oman will be the fourth of six Arab Gulf states to introduce VAT as part of a 2016 VAT union agreement. According to the Oman Tax Authority, the 5% tax which will be rolled out in six months, will be levied on most goods and services, with some exceptions.

The Government Communication Centre has published a wide list of goods and services that are not covered by VAT.

Following are the goods and services exempted from VAT:

1- Basic food commodities.

2- Medical care services and related goods and services.

3- Education services and related goods and services.

4- Financial services.

5- Undeveloped lands (vacant lands)

6- Resale of residential properties.

7- Passenger transport services.

8- Renting real estate for residential purposes.

9 – Supply of medicines and medical equipment.

10- Supply of investment gold, silver and platinum.

11- Supplies of international transport and interchange of goods or passengers and the supply of related services.

12- Supply of rescue and aid aircraft and vessels.

13-Supply of crude oil, petroleum products and natural gas.

14- Supplying means through sea, air and land transport for the transport of goods and passengers for commercial purposes and the supply of goods and services related to transport.

15- Supplies for people with disabilities and charities.

For any further assistance and/or information in respect of the above, please contact Baianat-IP Oman office at Oman@baianat-ip.com