Oman’s Sultan has approved Oman Sultani Decree No. 121/2020 issuing the Sultanate’s VAT Law. Under the Law, the tax will be imposed on most goods and services with specific exceptions detailed in the Law and subsequent regulations. It will be applied at every stage of the supply chain and on the import of goods into the Sultanate with specific exceptions specified in the Law and subsequent regulations. It will be levied at 5% and the Sultani Decree has been issued in line with a VAT Agreement signed by the GCC countries in November 2016.
Under Article 2 of Oman Sultani Decree No. 121/2020 the Chairman of the Tax Authority will issue the Implementing Regulations to the Law within six months of the Law being enforced. They will also issue the necessary decision to implement it. Anything which contravenes or contradicts it will be repealed.
The relevant Sultani Decree will be published in the Official Gazette and it will come into force 180 days after it is published in the Gazette.