New product launch

The situation

Carbonated drinks carry 50 percent excise in Oman, and VAT applies on top.

The law

• Oman Excise Tax Law (in force 15 June 2019): 100 percent on tobacco, pork, alcohol and energy drinks; 50 percent on carbonated and sweetened drinks

What it means for you

Carbonated drinks carry 50 percent excise, and VAT at 5 percent is added on top. A product with a pre-tax price of OMR 0.400 rises to OMR 0.600 with excise, then VAT. Register before production or import and check labels match the declared category.

What to do

1. Price the product with excise and VAT.
2. Register for excise before production or import.
3. Check labels match the declared category.
4. File excise returns.

Related

• Do sweetened juices carry excise
• Excise rates by product
• Stock losses
• Retailers and excise
• Excise records
• Excise and VAT together