Important steps have recently been taken towards the long awaited adoption of VAT in Oman, making it the fourth Gulf State to introduce VAT as part of Gulf Union agreement. The Sultan of Oman has issued a Royal Decree (Decree) in relation to VAT implementation. According to the Decree, a 5% VAT rate will be implemented from 1 April 2021 and certain supplies will be exempted.
Furthermore, the tax authority of Oman has published guidelines to provide a general understanding of the system that will be implemented.
