The International Monetary Fund (IMF) is estimating $1 billion (OR 385 million) windfall for the Omani government from value added tax (VAT). The consumer tax, not conspicuously stated yet, will account for nearly 1.5 per cent of the gross domestic product though the amount can fluctuate depending on variables such as compliance rate and exemptions, the IMF said. Source: ArabianBusiness.com
According to surveys not many businesses have an adequate accounting systems to deal with VAT. Besides that lots of businesses lack the VAT knowledge of how a VAT works. Investments and training are needed to be ready in time.
To get VAT ready the following actions should be considered.
- Assess the business impacts
- Amend IT systems and business processes to the new situation forecasted and
- Review existing contracts and set rules for new contracts