The Oman Government has announced the approval of Royal Decree No. 121/2020 dated 12 October 2020, publicizing the long awaited Value Added Tax (VAT) Law. The VAT Law will come into effect 180 days from the date of its publication in the Official Gazette, with a likely VAT go-live date of April 2021. Let's see more about the aspects of VAT in Oman. 
 
The VAT implementation has a significant impacts to businesses with operations in the country. The announcement of the Law and its likely effective date of implementation means all businesses with supply chains in the Sultanate must look at their VAT implementation plans.
 
HERE IS THE GUIDE TO VAT ACCOUNTING PROCESS
 
Download our Oman VAT summary document to get a general overview of the following key areas:
  
·  General outlook around the implementation
·  VAT business impacts in Oman
·  Potential VAT risks
·  Common pre-implementation actions
 

VAT registration exemption for Oman:

In compliance with the restrictions and controls established in the laws, the Oman VAT has exempted the following supplies from VAT:

1. monetary services

2. Medical services and related products and services

3. Educational services, as well as related products and services

four. undeveloped land (bare lands)

5. Residential property resale

6. Local passenger transportation

7. Renting out residential real estate

8. Exempt or zero-rated imported products in Oman

9. Imported products for diplomats, consular agencies, and foreign organisations, among other things

10. Imported items for military and international security forces

11. Personal baggage and home appliances imported by a citizen/foreigner

12. The importance of non-profit organizations

13. Returned items

ARE YOU INTERESTED IN VAT DEREGISTRATION?

Zero-rate: 

The VAT legislation requires that zero rates be applied to the following supplies, subject to the requirements, limits, and situations specified in the regulations:

1. Food supply will be decided by the Chairman's decision.

2. pharmaceuticals and medical equipment

3. Gold, silver, and platinum investments

4. Transportation and associated services on an international and intra-GCC scale.

5. Commercial sea, air, and land transportation

6. Provision of rescue planes, boats, and support ships

7. Provision of crude oil, oil derivatives, and natural gas

8. Goods and services exports

9. Provision of goods and services in the event of a customs duty suspension

Re-exporting commodities temporarily imported for repairs and refurbishing

The legislation indicates major VAT reforms that must be implemented for the business sector across the nation. Although legislation is anticipated in the coming months, companies should take early efforts to prepare for and analyse the effect of VAT on their operations in Oman.

 
From our VAT implementation experience in the UAE, SAUDI, QATAR, BAHRAIN, OMAN, INDIA, UK AND USA businesses need to start preparing early, to ensure readiness and day one compliance.
Latest Blogs
Latest News
Categories
BMS Auditing Telegram BMS Auditing WhatsApp