VAT’s annual contribution to GDP likely to be RO 400 million
Partnering with one of its corporate members, PricewaterhouseCoopers, the Oman American Business Centre (OABC) organised a seminar to discuss the introduction of ValueAdded Tax (VAT) in both the Sultanate and the GCC.
The event was held at the Grand Hyatt Muscat and welcomed more than 60 business representatives and entrepreneurs from across the Sultanate.
To date more than 114 countries worldwide have adopted the VAT regime with tax rates varying from 25 per cent in Denmark to 10 per cent in Lebanon and Egypt.
VATs in the GCC are expected to be set at 5 per cent, with estimates of an annual contribution of RO 400 million to the Sultanate’s GDP.
This is according to the Ministry of Finance.
The conference featured a presentation by expert Nick Giannopoulos, VAT Director, PricewaterhouseCoopers (PwC), Abu Dhabi, who updated attendees on the latest developments regarding the GCC framework for VAT, its implementation in other regions, and steps moving forward.
Giannopoulos drew on multiple real-life examples to provide participants with relevant insights and shared his years of experience with bringing VAT to other countries around the world. The presentation was followed by an interactive question and answer session.
“Every aspect of the economy, from food and manufacturing to construction, real estate and pharmaceuticals will be impacted by the establishment of the VAT system,” said Ali Daud, OABC President.
“To be successful in dealing with this change, companies need to develop in-depth implementation strategies that accommodate this new tax, and the OABC is pleased to have provided this seminar to assist businesses in Oman as they move forward with their preparations.”