The application of Value Added Tax will be revolutionary for the country as it will not only benefit the growth of the economy but will also support the progress of the country as a whole. This would prove to be one of the critical steps that the state takes to expand its economy. Oman would turn out to be the fourth member of the Gulf Cooperation Council (GCC) to implement VAT in the single Unified VAT Agreement.
What is VAT?
VAT is a general consumption tax that is charged on dutiable goods and services that are bought and traded in Oman comprising the import of goods and services. It is taxed and collected at each phase of the supply chain right from the producer’s buying of raw materials to a seller’s sale of an end-product to a customer.
Omani businesses act as tax collectors for the Sultanate of Oman and are assigned with the duty of charging, collecting, and remitting the tax to the government. Companies need to register for VAT if they happen or expect to meet a yearly deliveries threshold.