The Arab Gulf state of Oman has indicated that it will introduce Value Added Tax on 1 January 2018.
There is no indication of the standard VAT rate, but it is likely to be 5%.
Oman is part of the six-state Gulf Co-operation Council, which also includes: Saudi Arabia, UAE, Qatar, Kuwait and Oman. All of them are co-operating on introducing VAT, including harmonization of regimes along the lines of the European Union.
VAT is seen as an important budgetary reform for the states, diversifying their revenues from oil duties. The halving of oil prices over the last three years has accelerated this reform.
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