After the issuance of Royal Decree No. 121/2020, Sultanate Of Oman published its VAT Law in the Official Gazette on 18 October 2020 (“VAT Law”). VAT will be imposed in the Sultanate Of Oman at the standard rate of 5% in line with the GCC VAT Agreement effective from 16 April 2021, making Oman 4th GCC country to implement VAT after UAE, KSA and Bahrain.
According to the VAT Law, the VAT regulations, (which will define the details on application of VAT in the state), will be published within six months of the effective date of the law viz. 15th October, 2020.