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Oman: VAT due on unsold excess goods
Muscat- March 10, 2021:
Value added tax is due on excess stocks of goods that have been bought by companies to be sold to customers, even if they remain in storage once that company has ceased operations, a legal expert in the country has said.
Even if a company is storing the goods or all commercial activities have stopped, the company will be liable to pay VAT for these goods. Only goods and services provided by commercial organizations as gifts would be exempt from taxes. As a commercial trader engaged in marketing, distribution, manufacturing, or retail, one should budget for this tax. The general rule is that the new VAT tax should apply to all products and services.
Oman is introducing VAT on April 18 2021 and all companies that will be liable for VAT should register before this date.
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