Muscat: Oman is all set to introduce a 5 per cent value-added tax (VAT) in six months’ time.

This comes after His Majesty Sultan Haitham bin Tarik issued a Royal Decree to implement Value-Added Tax in the Sultanate within a period of not more than 6 months.

A statement issued online by the Oman News Agency (ONA) read: ”His Majesty Sultan Haitham Bin Tarik has issued two Royal Decrees; the first of which was to amend some provisions of the Code of Criminal Procedure, and the second decided to issue a value-added tax law.”

Once implemented, Oman will become the fourth GCC state to introduce VAT. Only Bahrain, UAE, and Saudi Arabia have introduced the value-added tax on goods and services thus far.

Meanwhile, this year, Saudi Arabia became the first GCC state to have tripled the VAT rate – from 5 per cent to 15 per cent – since its implementation.

The Oman Government Communication Center has issued a list of goods and services that will remain exempted from the VAT.

1- Basic food commodities.

2- Medical care services and related goods and services.

3- Education and related goods and services.

4- Financial services.

5- Undeveloped or vacant lands.

6- Resale of residential properties.

7- Transport services for passengers.

8- Renting real estate for residential purposes.

9- Supply of medicines and medical equipment.

10- Supply of investment gold, silver and platinum.

11- Supplies of international transport and interchange of goods or passengers and the supply of related services.

12- Supply of rescue and aid aircraft and vessels.

13-Supply of crude oil, petroleum products and natural gas.

14- Supply means through sea, air and land transport for the transport of goods and passengers for commercial purposes and the supply of goods and services related to transport.

15- Supplies for people with disabilities and charities.

قائمة واسعة من السلع والخدمات لا تشملها #ضريبة_القيمة_المضافة كالسلع الغذائية الأساسية، وخدمات وسلع الرعاية الطبية والتعليم ومستلزمات ذوي الإعاقة والخدمات المالية.#التواصل_الحكومي pic.twitter.com/bNd7xldyxp

— التواصل الحكومي (@Oman_GC) October 12, 2020

Source: Oman News Agency