Oman begins to implement VAT from today

Oman begins to implement VAT from today

Photo Taken In Oman, MuscatOman has become the fourth Gulf state to implement VAT, with a flat 5 per cent being imposed on a range of goods and services from Friday, April 16.The other economies to have done so are the UAE, Saudi Arabia – which last year raised its VAT rate to 15 per cent from 5 per cent – and Bahrain.Oman expects 400 million riyals in additional revenues for the state exchequer via the tax, equivalent to 1.5 per cent of the country's GDP. The receipts will come in handy as the Gulf state tackles budget deficits that have widened as a result of the pandemic hit to the economy.Oman had in place a six-month transition period before the VAT came into effect. But categories such as essential foodstuff will be rated at 0 percent VAT.Comments Read Next5 days agoOman exempts 500 food products from VAT2 weeks agoOman: VAT implementation to start on April 164 weeks agoOman: Personal luggage, gifts carried by travellers exempt from VATMarch 14, 2021Oman: 5% VAT will come into force starting April 16March 9, 2021UAE: Social media influencers must pay VATMarch 7, 2021UAE: Services provided by artists, influencers subject to VATJanuary 22,