What is VAT?

VAT has been implemented in more than 160 countries around the world. It is an indirect tax charged on nearly all goods and services that are bought and sold in the Sultanate, including goods and services imported into the Sultanate. Certain goods and services may be zero-rated or exempt. VAT is a tax on consumption that is paid and collected at every stage of the supply chain; from a manufacturer's purchase of raw materials to a retailer's sale of an end-product to a consumer.

How does it affect Omani businesses?

Effectively, Omani businesses act as a tax collector for the Sultanate of Oman and bear the costs of charging, collecting and claiming back the VAT – and staying compliant.