GCC Indirect Tax Weekly Digest
March 16, 2021
OTA issues VAT Executive Regulations
The Oman Tax Authority (OTA) has issued the anticipated Executive Regulations (Regulations) through Decision 53/2021. The Regulations are published in Arabic in the Official Gazette no. 1383 dated 14 March 2021, available here. The Regulations provide implementing guidelines to the Value Added Tax (VAT) Law that will come into effect from 16 April 2021.
Deloitte’s indirect tax specialists based in Oman have prepared a detailed alert to provide you with some key information to help you navigate this change, covering the key provisions of the Executive Regulations including VAT exemption and zero-rating, VAT compliance, tax invoices, VAT returns, refunds, and appeals and penalties.
The release of the Regulations is an important milestone for VAT in Oman. Many aspects of VAT are clarified; but there are bound to be gray areas and open issues which may need some further guidance and clarification. The issue of the Regulations themselves requires taxpayers to review their compliance processes and adjust them as good practice dictates.
It is crucial for businesses to carefully read and familiarize themselves with the VAT Law, Executive Regulations and guidelines issued by the OTA. This is in order to ensure day one VAT compliance.
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.