The Sultanate of Oman began applying the value-added tax after the law came into effect, as the tax will be applied to most goods and services in addition to goods imported into the Sultanate, with some exceptions specified in the law.
The government has expanded the list of goods subject to value-added tax at a rate of zero percent from 93 basic food commodities to 488 food commodities, as part of the social protection initiatives approved by Sultan Haitham bin Tarik.
Food commodities subject to zero value-added tax are vegetables, fruits, legumes, grains, dates, spices, oils, fish, red meat and poultry, in addition to dairy, cheese, tea, coffee, sugar, salt, and juices without added sugar or sweeteners.
The value-added tax is an "indirect" tax whose value is borne by the final consumer, while the supplier (taxable) calculates and collects the tax and pays it to the tax authority. It is also considered a tax on consumption that will be applied in the Sultanate at a basic rate of 5 percent.
It should be noted that legislation related to tax has been promulgated, operating the computer system for value-added tax, electronic linking with the authorities concerned with implementation, and strengthening and training human cadres in the tax authority in line with the requirements of tax implementation.
Source (London-based Al-Arab Newspaper, Edited)
