VAT Implementation Services
News About Value Added Tax
The Unified Gulf Cooperation Council Value Added Taxation Framework Agreement was published on the 3rd of May 2017. This laid out the basic principles of Value Added Tax or VAT for the GCC and specified that Member States only have until the 1st of January 2019 to implement the VAT law.
Businesses that have annual revenues over Omani Rial 38,500 are obliged to register under a Value Added Tax (VAT) system. These businesses will accordingly be responsible for collecting 5% VAT from their customers. Businesses whose taxable supplies or expenses range between OMR 20,000 to OMR 38,500 have the option to register under the VAT system, thereby allowing them to claim inputs on their purchases.
With this, Oman published the VAT Laws and Executive Regulations. These cover any flexibility allowed in the GCC Framework Agreement as well as the processes to be followed by business owners and partners. The GCC States implemented VAT on the 1st of January 2018. Those that are the most affected businesses have registered and have been filing returns. They have also been paying the VAT to the authorities, who have been proactive in publishing guides and clarifications regularly.