Muscat: Value-added tax (VAT) will come into effect in the Sultanate from the 16th of April 2021, as per the Tax Authority of Oman.
As per media reports, the Sultanate’s Tax Authority issued three ‘executive decisions’ today [Wednesday, January 6], which includes exempting basic food commodities from the list.
Food items such as milk and dairy, fresh eggs, vegetables, fruits, coffee, tea, cardamom, meat, fish, poultry, drinking water, bread, nutritional food for children, and salt among more will be exempted from VAT.
Here is a complete list of items exempted from 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- Charities and essential supplies for people with “disabilities”.
The introduction of VAT from 2021, as per KPMG – a professional firm providing Audit, Tax, and Advisory services – will help generate a new source of income for the country. VAT is expected to generate revenues almost equivalent to the corporate tax collections.
While more details on the projected VAT income for Oman are expected soon, early estimates show an RO400 million increment to the nation’s income upon its activation in 2021.
وتتمثل هذه السلع في اللحوم والأسماك والدواجن والألبان ومشتقاتها والبيض الطازج والخضروات والفواكه والبن والشاي وحب الهيل والحبوب وزيت الزيتون والسكر والمحضرات الغذائية للأطفال والخبز ومياه الشرب المعبأة وملح الطعام.
— وكالة الأنباء العمانية (@OmanNewsAgency) January 6, 2021
