Oman implements VAT – MEED

  • Date: 18-Apr-2021
  • Source: MEED
  • Sector:Agriculture
  • Country:Oman
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Oman implements VAT – MEED

Muscat introduced value-added tax (VAT) on 16 April. The government announced plans to introduce the tax in October last year.Oman joins other GCC countries that have already implemented VAT. The UAE and Saudi Arabia both introduced VAT on 1 January 2018, while Bahrain introduced the tax one year later on 1 January 2019.The rate of VAT in Oman is 5 per cent. The government said that it has expanded the list of good that are subject to zero per cent tax from 93 to 488 basic food commodities.Food commodities subject to zero value-added tax are vegetables, fruits, legumes, grains, dates, spices, oils, fish, red meat and poultry, in addition to dairy, cheese, tea, coffee, sugar, salt, and juices without added sugar or sweeteners.Muscat said in November 2020 that it planned to implement income tax in 2022, according to its Medium-Term Fiscal Balance Plan for 2020-24. The plan says the government is planning income tax for high-income earners.