Muscat: A VAT seminar was conducted by Oman American Business Centre (OABC) in collaboration with PricewaterhouseCoopers (PwC) last week to educate its corporate members on introduction of Value Added Taxes.
Likely to be in place early next year, 5 per cent VAT will need a complete IT system revamp and staff education to manage cash flow. Nick Giannopoulos, VAT Director at PwC highlighted the major effects of VAT and updated attendees on the latest developments regarding the GCC framework for VAT, its implementation in other regions, and steps moving forward.
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 OMR 400 million to the Sultanate’s GDP, according to the Ministry of Finance.