News
VAT Executive Regulation Issued By Tax Authority

Muscat: Saud Nassir Al-Shukaili, Chairman of the Tax Authority, today issued Decision No. 53/2021 promulgating VAT Law’s executive regulation, based on the provisions of Royal Decree No. 121/2020 on VAT Law.
The bylaw includes all procedures related to general provision stated in the VAT Law, like registration, repayment, tax collection, and details about the tax, including methods of objection and petition.
The executive regulation consists of 13 parts comprising 211 articles. He pointed out that some goods are charged zero tax and that Decision No. 2/2021 covers 93 such items, including medical drugs and equipment.
The Sultanate is expected to generate 1.5 per cent of the value of Gross Domestic Product or RO400 million per annum from the VAT, said al-Shukaili, noting that the VAT figures among the types of tax that do not affect the business sector and, instead, have a potential to generate abundant revenue as per its global applications.
Al-Shukaili affirmed that all preparations and necessary requirements have been finalized for the application of the VAT with effect from 16 April 2021.
The steps included the issuance of statutes related to the VAT (the law and executive regulation), the operation of a VAT computer system, and electronic collection with the departments concerned.
In a statement to Oman News Agency (ONA), Al-Shukaili explained that the application of VAT is made in accordance with exhaustive studies undertaken over a long period of time. The studies covered the economic and social impacts of the VAT in the Sultanate.
A study in Oman showed that the impact of the VAT on consumers in the Sultanate will be minimal. The Sultanate applied zero-rate to basic commodities and exempted some domains like education, healthcare and financial services, said al-Shukaili.
The study in Oman also showed that tax returns from the VAT will contribute to supporting government spending on some services and infrastructure, and this will reflect positively on citizens’ life, al-Shukaili added.
-
Automotive2 months ago
South Korea Plans to Support Auto Sector with US$2B Following US Tariffs
-
News2 months ago
Aligning HR Strategies with Oman Vision 2040: A Roadmap for Organisational Growth – OER Business Summit 2025
-
OER Magazines1 month ago
OER, April 25
-
News2 months ago
Oman Oil Prices Witness Drop Amid Shifting Global Trade Dynamics
-
Alamaliktistaad Magazines1 month ago
Al-Iktisaad, April 25
-
Renewables3 weeks ago
Jindal Renewables and OQ Alternative Energy Sign Joint Development Agreement to Advance Integrated Renewable Power Projects in Oman
-
Banking & Finance2 months ago
Sohar International Bank SAOG Announces Intention to Merge with Ahli Bank SAOG
-
Banking & Finance2 months ago
Bank Nizwa Signs MoU with Ministry of Endowments and Religious Affairs to Enhance Endowment Management & Islamic Finance Frameworks