Labelling goods with 0% VAT a must

The Consumer Protection Authority (CPA) has directed all shopping centres and stores in various governorates of the Sultanate of Oman to make a label identifying all goods exempted from value-added tax (VAT).

Judicial officers from CPA carried out inspection campaigns at commercial, industrial and service establishments to ensure the availability of basic commodities, price stability, and the right application of value-added tax.

This came after some complaints by customers regarding the absence of labels identifying goods included and exempted from tax, leading to fallacies that occur in shopping centres and exploitation by some traders due to lack of awareness among customers about the goods included in the tax or not.

Prior to the holy month of Ramadhan, the Consumer Protection Authority held a meeting with suppliers in the Governorate of Muscat as part of its preparations to receive the blessed month, intensify supervision and ensure the availability of goods and services that consumers need in addition to emphasising the application of the tax properly.

Salim bin Ali al Hakmani, Chairman of the CPA, confirmed, in the meeting, that the authority is working to tighten control to ensure the stability of commodity prices, and fieldwork teams will be distributed in various shops and commercial centres in the Sultanate of Oman to work in an integrated manner in following up and monitoring commodity prices.

Any supplier violating the law will be dealt with in accordance with the legal procedures. He stressed that the consumer must consciously contribute while shopping to facilitate the authority's mission by reporting any violations in the market, in addition to ensuring that the prices of goods fall within the specified VAT rates.

Price control began early before the holy month due to the active commercial movement that accompanies this period where consumers go for various food commodities. These inspections aim at ensuring the proper application of tax mechanisms by suppliers in accordance with the VAT Law and its Regulations. The authority has increased work teams in the authority's directorates and departments in various governorates to ensure compliance with the prices of goods and services.

Application of value-added tax in the Sultanate of Oman on most goods and services began as of April 16, 2021, at a rate of 5 per cent, with about 488 goods exempted from tax (0 per cent). In March this year, His Majesty gave Royal directives to add 25 other food commodities to the list of commodities exempted from value-added tax, bringing the total number of commodities exempted from the tax to 513.