VAT a major milestone on path to fiscal sustainability in GCC, says RSM

MUSCAT, OCT 21 – With the coming of VAT to Oman and the GCC, it is important that businesses begin to understand the concept of VAT and the implications of VAT on their operations and their commercial strategy, according to tax experts representing RSM, the world’s sixth largest network of independent audit, tax and consulting firms.
The global giant is represented in the Sultanate by RSM Oman (George Mathew LLC), which has been operating in Oman since 1988, providing a comprehensive range of services in Audit, Tax and Advisory.
Last week, the Director of VAT and Indirect Tax at RSM UK and a member of the RSM Global VAT Group, Andy Ilsley, visited the Sultanate to lead a presentation on VAT for one of the largest government owned companies. RSM also gave a presentation on VAT to a group of companies, organised by one of the embassies.
Andy Ilsley, Director for VAT at RSM UK said, “The introduction of VAT into Oman in 2018 along with the other members of the Gulf Cooperation Council represents a major milestone on the path to fiscal sustainability. In common with over 160 countries that have now have a VAT, or similar GST (Goods and Services Tax) system, it is recognition that indirect taxation is increasing in global importance as a means for governments to achieve policy objectives through affecting consumer spending whilst remaining broadly neutral for businesses. However, often badged as a “simple tax” at the outset, businesses operating in countries with more established VAT regimes recognise that VAT can represent a significant business issue if it is not properly managed.”
George Mathew, Managing Partner of RSM Oman (George Mathew LLC) said the Group plans to provide high quality VAT advisory services to its clients in Oman.