Tax flash: VAT to be implemented in Oman
VAT to be implemented in Oman
The Oman Tax Authority continues with its preparations in order to be ready to implement VAT within a short timeframe.
In a recent interview with Bloomberg at the World Economic Forum 2020 in Davos, His Excellency Ali bin Masoud Al Sunaid, Minister of Commerce and Industry in Oman, confirmed that Oman would introduce Value Added Tax (VAT) “sometime during the beginning of 2021”. The Oman Tax Authority continues with its preparations in order to be ready to implement VAT within this timeframe.
VAT impacts businesses beyond finance and, among others, warrants a review of processes, systems, documentation, compliances, policies, contracts and pricing. The experience of businesses in other GCC countries, where VAT has already been implemented, shows that preparing for the introduction of VAT requires careful planning and time. It is therefore important that businesses in Oman do not delay and start preparing for VAT implementation based on existing VAT legislations in the GCC and the GCC Common VAT Framework Agreement. Once the Oman Law and Regulations are issued sometime later this year, businesses can update the work already done and be fully ready.
KPMG has a dedicated team of experienced VAT implementation specialists based in Oman. If you need any assistance with VAT implementation in Oman, please reach out to your tax advisors at KPMG
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