Companies supplying taxable goods or services in Oman will need
to comply with the new VAT laws from April 2021.
Jurisdiction:
Oman
What's new?
VAT law comes into force in Oman from April
2021 following Royal Decree No. 121/2020, which was
published in the official gazette on 18 October 2020.
The country will apply VAT at the standard rate of 5%. Oman
becomes the fourth Gulf Cooperation Council (GCC) member state to
implement VAT, following the UAE, Kingdom of Saudi Arabia and
Bahrain.
What does it mean for businesses in Oman?
Businesses whose taxable supplies' value exceeds the
mandatory threshold will need to register for VAT with the Oman Tax
Authority (OTA). Both mandatory and voluntary VAT registration
threshold amounts should be released shortly. The voluntary
registration option is designed for start-up businesses with low or
no turnover, to enable them to register for VAT.
