The Royal Decree 121/2020 (Oman VAT Law) for the implementation of value added tax (VAT) in Oman was published in the Official Gazette on 18 October 2020 and will be effective 180 days after publication. The effective date i.e. date of implementation of VAT in Oman, will, therefore, be Friday, 16 April 2021.

Generally, the Oman VAT Law reflects the principles set out in the Common VAT Agreement of the States of the GCC and the procedures specified in the Income Tax Law of the Sultanate. There are, however, differences between the Oman VAT Law and the VAT laws of other GCC States.

  • To access the Arabic version of the Oman VAT Law, please click here.
  • To access KPMG’s unofficial English translation of the Oman VAT Law, please click here.
  • To access our summary of the key provisions of the Oman VAT law, please click here.

VAT has a significant impact on every facet of business and therefore requires timely and careful planning. Moreover, as VAT will be implemented from 16 April 2021 (i.e. the middle of the month), businesses would need to give due consideration to transition and cut-over planning.

The Oman Tax Authority (OTA) will issue further guidance over the next few weeks, but businesses need to immediately consider steps necessary in order to be adequately prepared, especially given that the OTA is allowed up to six months after the effective date i.e. October 2021, to issue the Executive Regulations. With less than six months to prepare for VAT implementation, it is critical that businesses use this time judiciously.

KPMG has a dedicated team of experienced VAT implementation specialists and advisors based in Oman supported by a larger, experienced regional team. If you need assistance with VAT implementation in Oman, please reach out to your tax advisors at KPMG or the contacts mentioned below.

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