AdministrativeVAT in OMAN: what consequences for expatriation?

VAT in OMAN: what consequences for expatriation?

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5% VAT has been applied since April 16, 2021 on all goods and services with the exception of certain food, medical or natural gas products. It taxes local products and is payable upon importation into the country in addition to customs duties.

There is no list published by the government, however we understand that All supplies of goods and services in Oman, except those mentioned above will attract VAT at the standard rate of 5%, subject to the place of supply provisions mentioned in the Oman VAT Law

Real estate companies (or big landlords or big compounds) with which we work are rather in which brackets to know when we will have the repercussion on the rents?

Presently VAT is not applicable on rental of residential properties.


What are the possible repercussions for an expatriation in Oman? Increasing cost of living? when and by how much for an expatriate. 

Yes, the application of VAT will increase the cost of living, as it will impact the goods and services used by expatriates like food, transportations and other services. These increases in cost of living will be seen in year time from now.


Increasing cost of housing? when and how much for a rental 

As of now VAT is not applicable on residential rental, however VAT is applicable on service & maintenance charges paid by landlords for the upkeep of their property, which in some way will find its way into the rental.  The amount of this impact is unknown at the moment, however we are constantly monitoring the same and will update you as soon as see this impact happening.


Cost of other expenses related to an expatriation? which ones and by how much?

Cost such as food supplies, transportation (car purchase & rental), cleaning services and all other purchases will rise by 5% which would impact the expenses of the expat.