Ministry of Finance confirms intent to implement VAT by 2018
Oman announces the introduction of VAT by 1 January 2018
On Saturday 5 November 2016, the Ministry of Finance of the Sultanate of Oman announced that it intends to implement VAT by the beginning of 2018.
In the announcement, His Excellency Saud Nasser Al Shukaili, secretary-general of Taxation at the Ministry of Finance, confirmed that, in accordance with the joint efforts between Oman and the other Gulf Cooperation Council (GCC) states, the tax will be officially approved the week of 6 November 2016 and will begin to be implemented starting from 2017.
While it is expected that the government implementation process referred to will involve the release of a proposed law, plus measures to deal with the registration requirements and processes, it also will require that business commence their own implementation projects with some urgency.
Therefore, it is crucial that businesses in Oman begin preparations to ensure compliance with the expected VAT law by 2018, if they have not done so already.
The other GCC states are expected to make similar announcements in due course that will require all businesses across the GCC states to consider the impacts of VAT.