Oman Guide: What Is The VAT Impact On Telecommunications Sector In Oman?

VAT in Oman
Feasibility Study and Market Research Company for Restaurant in Dubai, UAE.

The recent implementation of VAT in Oman has left its implications across various sectors in the economy. While some sectors are relatively less affected due to the various exemptions in the VAT law, other sectors have been impacted more. For instance, the food and beverages sector would undergo less impact as much of it is exempt from the tax. Telecommunications, however, is a sector to which the value-added tax would mostly be applicable to.

VAT for telecommunications sector in Oman: How would it apply?

In most cases, the VAT in Oman would apply to the telecommunications sector at the standard rate of 5%. Most of the expenditure that the telecom companies make in the process of installing towers and other infrastructure would attract VAT. This, in turn, may reflect in increased prices at the end of the consumers. The telecom companies would now have to include 5% VAT for telecommunications sector in Oman on all their products and services.

Would the end-users have to pay more?

The VAT for telecommunications sector in Oman has made it mandatory for the telecom service providers to collect 5% VAT from the consumers. Thus, all the packs, ranging from prepaid plans to internet plans would include the VAT. Although the consumers would have to pay the VAT in Oman, they may not have to shell out anything extra over what they already are. This depends on how the telecom companies plan to include VAT in the prices.

They may add a 5% value-added tax on the previous prices such that they do not have to compromise on their profit margins. In this case, the end-users will have to pay 5% extra. The other option for the telecom companies is to include the VAT in Oman without raising the price. Thus, the end-users would still pay the tax but while paying the same price that they used to. In this case, it would be the telecom companies compromising on their profits in order to be able to offer competitive prices.

Why is the VAT for telecommunications sector in Oman important?

For any nation, the telecommunications sector holds immense importance. It is a key component of the infrastructure in the country and plays a vital role in development and innovation. The same applies to the telecommunications sector in Oman too. One of the reasons why the VAT for telecommunications sector in Oman applies at the standard rate is the way it would enrich the economy.

This sector incurs huge expenses and attracts major revenues. With the VAT in Oman applying to the telecom sector, the additional influx into the economy in the form of the tax would be quite significant. The goal behind the implementation of value-added tax in Oman is to strengthen the economy. The nation has suffered severe financial losses due to the COVID-19 pandemic. The government passed the law for the implementation of VAT in Oman to help the economy recover. The additional income from the VAT on the telecommunication sector would indeed help to provide the much-needed boost.
For more information on this topic, please visit our Blogs Section or Contact Us

For enquiries, E-mail:


Related Articles:

What is the Adjustment of VAT in Oman?

What is the Place of Supply of Services for VAT in Oman?

What Is The VAT Impact On Medical Sector In Oman?

VAT Registration in Oman: Portal Guidelines

VAT Law in Oman

Tax Invoices and Records in VAT Oman

Place of Supply in VAT Oman

What are Input Tax and its treatment for VAT in Oman?

Leave a Reply