VAT Introduction

Oman to introduce VAT in 2018

The Omani government has announced its plans to introduce a VAT regime, previously said to be as early as 2017, it’s now believed this will come into affect on the 1st of January 2018, giving businesses more time to acclimatise.

The VAT rate is expected to come in at 5%, which although low by European standards, is expected to generate OMR250 million a year. These extra funds are needed to cover the gap caused by the recent and continued drop in oil prices which are affecting many of the Gulf states. The Omani government have also stated that they will introduce a zero rate for many essential and basic goods and services.

For more information click here (note it goes to our new Innovate Tax site)

Puerto Rico – Tax reform

Puerto Rico VAT Implementation

Puerto Rico has now advanced its plans to implement VAT, with it expected to be introduced in 2016, they have issued a bill to withdraw the current Sales and Use tax. This has been implemented in line with their plans to shift from an income based system to a consumption tax based system. In order to prepare for the VAT introduction they have also risen the current SUT tax from 7% to 16% which will come into effect on the 1st of April 2015. There are several key points in the new indirect tax regime:

• The new VAT rate will be 16%
• The current SUT rate will increase from 7% to 11% on 1/4/15
• Exports will be exempt from VAT but Imports will be liable
• The supply of taxable goods or services will be subject to VAT
• VAT filings will be monthly, due no later than the 20th of the month
• There will be a facility to reclaim any VAT credits
• Will eliminate a significant number of exemptions, exclusions and the preferential tax treatment of many items.
• VAT will be imposed on every taxable transaction Continue Reading