Oman is soon to follow it’s GCC neighbours UAE, Saudi Arabia and Bahrain in introducing Value Added Tax in 2021 in a bid to increase Oman’s economic growth by 2%.
“VAT is something people don’t like but this is something we have been lobbying for. It will come into effect sometime in the beginning of the next year,” said Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry in Oman.
While the UAE and Saudi Arabia have put in place legislation that allows foreign companies to reclaim VAT incurred on business costs, it is unclear this early on whether Oman will follow suit and implement a VAT reclaim opportunity for foreign companies.
VAT IT is monitoring the situation closely and will provide updates on all VAT reclaim elements of this developing story.