Oman to levy 5% VAT from next month
It is estimated that VAT will raise around 400 million Omani riyals per year.
Oman will start implementing five per cent value-added tax (VAT) from April 16, Oman News Agency reported on Sunday
It is estimated that VAT will contribute 1.5 per cent towards the country’s gross domestic product (GDP) and raise around 400 million Omani riyals (Dh3.8 billion; $1 billion) per year for the country’s exchequer.
The implementation of VAT comes in line with the GCC framework that was agreed between the six nation bloc. The UAE and Saudi Arabia levied five per cent VAT on January 1, 2018 followed by Bahrain. Saudi Arabia later hiked VAT to 15 per cent amidst shortfall in revenues due to plunge in oil prices.
A study by EY had predicted that the adoption of VAT by GCC countries would generate additional annual revenues of $25 billion.
Saud bin Nasser bin Rashid Al Shukaili, chairman of the Tax Authority in Oman, said all necessary preparations and requirements to implement VAT from April 16 have been completed.
Oman’s tax authority had opened registration process for the companies to register in the special tax system in February last year.
He explained that companies have been given the necessary time to prepare their accounting systems and other measures for tax compliance.
The carrier has also transported more than 100 tonnes of syringes... READ MORE
China remains growth generator with revenues up 15.4% READ MORE
Consumer confidence in Dubai highest since 2015, says new report. READ MORE
The plan is to have 4,000 self-driving vehicles by 2030. READ MORE
More than 1.5 million meals have already been donated a day after the ... READ MORE
The new cases were detected through 193,896 additional tests. READ MORE
Yusuff Ali landed in Abu Dhabi on a special aircraft and is resting... READ MORE