According to Omani media reports, the Ministry of Finance of Oman has postponed the introduction of value added tax (VAT) until 2019.
Omani authorities will postpone the introduction of VAT until 2019. The postponement of the bill until 2019 is supposed to provide Oman's business with more opportunities for thorough preparation.
The Times of Oman news agency, citing sources in the ministry, said some products, such as tobacco, energy-free soft drinks, would be taxed from mid-2018.
Despite the fact that the countries of the Gulf Cooperation Council agreed to introduce VAT in January 2018, only Saudi Arabia and the United Arab Emirates expressed their full readiness, the remaining members of the community will adopt the corresponding legislative changes later.
In October, Jihad Azur, director of the International Monetary Fund for the Middle East and Central Asia, noted that “all” council countries retain their intentions to introduce VAT. Mr. Azur called this measure "an important tax reform that requires preparation and close interaction with representatives of the business community."
In addition, the employee noted that the time difference in the introduction of VAT is unlikely to have a large impact on commodity circulation in the region.
“Saudi Arabia and the UAE are the two largest economies in the region that have confirmed their commitment to introduce VAT. I am sure that other countries will follow their example,” the director said. "It should be emphasized that this tax is domestic. Therefore, its impact on other countries will be quite limited."
We remind you that from January 1, 2018 in the United Arab Emirates the value added tax will come into force, the amount of which will be 5%.
