Now that 2021 has drawn to a close, we look back at the big tax news from the year and report on the new stories from quarter four.
Across the region, many of the tax measures introduced to help businesses through the COVID -19 pandemic came to an end in 2021. Hopefully, these measures will not be needed again. Value Added Tax (VAT) featured prominently in the tax headlines in 2021. In Oman, taxpayers have been busy with the introduction of VAT, which is now almost complete. Oman opted for a phased implementation of the tax and the final phase, which involves the registration of businesses with taxable turnover between OMR 38,500 and OMR 249,999, runs from 1 December 2021 to 28 February 2022. The businesses concerned will be registered with effect from 1 April 2022.
Saudi Arabia also witnessed some important changes in 2021, including the merger of the General Authority of Zakat and Tax with the General Authority of Customs, and the introduction of the first e -invoicing regulations in the region. This type of regulation is becoming more common around the world, and it is likely that other GCC states will introduce their own versions of e -invoicing in due course. There has also been an interesting change to the date of supply rules in Saudi Arabia in the last quarter.
2022 will undoubtedly bring many new and unexpected changes and challenges to the world of tax. One major change that has already taken place is the increase in the Bharani VAT rate, which rose from 5% to 10% with effect from 1 January 2022. We will bring you updates on that in future editions and when any other tax news breaks across the region, we will report the details and offer our views and insights to keep you informed and ready for the challenges ahead.
We wish all our readers success in 2022.
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KEY CONTACTS
ASHISH ATHAVALE
Partner - Tax Advisory Services
BRIAN CONN
Consulting Partner - Tax Advisory Services
MUFADDAL SAFDARI
Senior Manager - Tax Advisory Services & BDO Israel Desk
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