Following the introduction of value added tax (VAT) in Bahrain, Saudi Arabia, and the United Arab Emirates, Oman issued its own draft VAT Law in early September 2020. Once the Law is approved, the VAT will apply to goods and services at the suggested rate of three percent, with some limited exceptions on basic food items, healthcare, and education.
By way of background, the VAT Law is based on the common principles agreed by all Gulf Cooperation Council (GCC) countries as outlined in the GCC VAT Framework Agreement. Each member state of the GCC is expected to establish their own separate national legislation concerning the VAT and as such the detailed compliance requirements and set of rules will be outlined in each respective legislation.
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