Oman plans to implement a VAT system in April 2021. In mid-October the Gulf State issued its VAT law that will come into effect 180 days after its publication in the Official Gazette.
As the exact introduction date for the new VAT system is 180 days from the day the rules were officially gazetted on October 18, 2020, this means the date of implementation will be April 16, 2021.
This original intention for an Oman VAT system was confirmed by Oman's Minister of Commerce and Industry Ali bin Masoud Al Sunaidy during an interview with Bloomberg TV at the 2020 World Economic Forum in Davos at the beginning of the year.
Since this January 2020 gathering in Switzerland, Oman’s draft VAT law navigated its way along the country’s legislative path. Previous developments had seen the approval of the draft VAT law by the country’s Majlis Ash’ Shuras, the advisory council of Oman’s lower house, to the Sultanate’s State Council.
Back in June 2016, all six Gulf Cooperation Council (GCC) member states signed the Common VAT Agreement. It was agreed that each GCC Member State would introduce a VAT system at a rate of 5%.
As a result of this agreement, Oman will introduce VAT at a rate of 5% in April 2021. When it does so it will become the fourth member of the GCC member state to introduce a VAT system: Saudi Arabia, Bahrain, and the United Arab Emirates having already done so. For more on the GCC Common VAT Agreement and recent developments in the Gulf click here.
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