As you may be aware, Oman government has announced implementation of VAT and promulgated the VAT Law through Royal Decree 121/2020 on 18 October 2020. VAT is expected to go-live in Oman from 16 April 2021. There are few basic guidelines and FAQs already published by Oman Tax Authority on their portal https://www.taxoman.gov.om and we are expecting Executive Regulations and more guidelines to be published shortly.
VAT is a form of indirect tax with a wide scope, which would impact most transactions carried out by a company on both its revenue and expenditure side. In Oman, VAT will be applied at a standard rate of 5% with certain supplies falling under zero-rating and exempt category. For more information you can visit the tax authority portal - https://www.taxoman.gov.om
Being a transaction tax, in our own experience, implementation of VAT requires efforts across organization and is a business transformation which would need proper planning. We are expecting that your organization complies with all applicable Laws, Regulations, and Decrees in Oman. We hope that you have already started to prepare for VAT.
There would be certain requirements you would have to comply with for VAT purposes including but not limited to registration (based on your turnover), issuing of VAT compliant documents like tax invoice, credit note, debit note, etc. We are expecting more details in this regard to be issued by Oman Tax Authority through Executive Regulations and Guidelines.
For more information you can visit the tax authority portal - https://www.taxoman.gov.om