Oman is the latest Gulf Cooperation Council territory to confirm its participation in the bloc’s value-added tax project.
VAT is to be introduced in GCC countries from 2018, to diversify their tax bases away from revenues from oil.
Earlier this month, Kuwait also confirmed that it would introduce the levy from 2018.
In a meeting on June 16, 2016, the GCC Ministers of Finance approved a common framework for the development of national regimes for customs duties and value-added tax. The agreement paved the way for the introduction of harmonized excise duties from January 1, 2017, and a pan-GCC VAT framework from January 1, 2018.
The GCC is comprised of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Qatar, and Oman. The territories are expected to have a harmonized tax base and a five percent rate.
IMC Group