After years of planning, VAT is now in place in Oman! The first agreement back in 2016 was the introduction of this plan among the GCC, followed by years of planning. On April 16, 2021, Oman’s new VAT system went live.
The VAT rate in place is a standard rate of 5% on most goods and services with exceptions on essential food items, medical care, education, and financial services.
Under the new scheme, the number of basic food commodities charged a zero rate VAT will be increased to 488 from 93.
Furthermore, all VAT charges related to electricity consumption for citizens who have up to two residential category subscriptions will be paid by the government. This includes families that were previously eligible for government support for the two connections.
GVC can handle all of your VAT obligations for the UAE. Click below to arrange a VAT assessment for your business.