VAT specialist advice

Omani VAT Implementation: The Impact on Businesses

As per the guidelines of union VAT agreement 2016 of the Gulf Cooperation Council (GCC), Oman is set to implement VAT in early 2022. By introducing VAT in early 2022, Oman would be the fourth of the six Arab Gulf member states to follow suit. The current steps taken by the state authorities and information concluded by sources suggest that the implementation would be done after January 2022.

Since there are no lines drawn and no laws made in reference to the upcoming VAT implementation, businesses need to take preparatory measures according to the stipulated principles in the treaty and VAT treatments and approaches taken further by other member states (that can potentially be followed in Oman). For clarity on potential outcomes and ideal steps to be taken, businesses can rely on professional VAT specialist advice.

The Impact of VAT implementation on Omani Businesses

The opined VAT changes would influence business finance deeply and demand reviews on existing operations, procedures and practices, systems, contracts, international experience, pricing, policies, compliances, and documentations. Almost every industry will be affected by the VAT introduction but the following are some of the industries that may experience changes more than others:

  • Consumer product industries

Food Items, Education, Health, Insurance, etc. may come under this category.

  • Industrial product industries

Oil & Gas, Investment metals, etc. may come under this category.

  • Technology, media, and telecommunications

As mentioned above, no lines are drawn so far concerning any category. Omani taxation authorities may examine the trends of industries and learn from mistakes committed by the GCC member states while implementing the taxation change.

  • Financial services

Like UAE & KSA, Omani taxation authorities may enforce the VAT changes differently on fee-based and margin-based services or may employ a different approach.

  • Real estate

Omani authorities may examine the trends of sector and may categorize several products and services under taxable, zero-rate taxable or exemptible brackets.

Businesses need to brace themselves for the VAT execution as the implementation date is approaching. There are a large number of reputational, operational, and financial risks associated with the failure of compliance. By partnering with leading VAT consultancy services for VAT specialist advice, businesses can devise plans to prepare themselves for what’s coming.

Talk to our experts for a free VAT consultation

Millennial Partners’ seasoned consultants have an impressive history of servicing GCC clients with VAT implementation. Our subject matter experts can assist with VAT implementation roadmaps to ensure Omani businesses are prepared for the upcoming VAT system.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through its own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. We follow a coherent roadmap that includes incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out via our e-mail at info@millennial.ae.

enterprise blockchain consultants

How Blockchain can Redefine the Banking Paradigm

Ever since the first cryptocurrency, Bitcoin, was introduced in 2009, the underlying blockchain technology has been gaining huge popularity and adoption. The reason behind the burgeoning popularity of blockchain is its way of verifying transactions. It counts on consensus among a peer-to-peer (P2P) network of computers based on complex algorithms rather than a central bank or a third-party. The elimination of intermediaries has accelerated financial processes like cross-border transactions, trading and settlement, and more, while making them more reliable and cost-efficient.

The synergy of blockchain and services of enterprise blockchain consultants has helped various start-ups and incumbents, especially in banking and finance, to navigate their blockchain development journey. According to an estimate, the number of blockchain start-ups sits at over 5,000. Start-ups can typically lack the in-house technical knowledge and expertise, blockchain consultants steer their blockchain implementation process – from identifying and piloting use-case to implementing and deploying the solution.

Ways Blockchain will transform Banking

Blockchain holds the disruptive power and huge potential to transform nearly every process – whether it is the basic documentation or settling time-consuming transactions. These inherent capabilities of blockchain are attracting finance and banking decision-makers who believe that blockchain can bring profound, positive changes to their industry.

  • Blockchain for Trade Settlement

The current settlement process is based on the T+2 time-frame, which means that two to three days are required to settle transactions. Blockchain technology will bring everything on a distributed ledger, leading to the following benefits:

  • Global Trade

Blockchain will enable seamless global trading due to the distributed ledger that is accessible to everyone on the network, regardless of their geographical location. Furthermore, it will bring complete transparency to the system.

  • Lower Operational Cost

The elimination of intermediaries for trade settlement will result in reduced commissions and other costs. In addition, it will accelerate trade settlement (in the T+0 time-frame).

  • Increased Trust

As blockchain records all of the transactions transparently on a distributed ledger, a higher level of trust between the capital market participants can be built.

  • Blockchain for Trade Finance

The trade finance is one of the areas ripe for blockchain transformation. Global leaders such as Deutsche Banks, Bank of America Merrill Lynch, and JP Morgan are harnessing blockchain technology, and thus services of enterprise blockchain consultants, to enhance their workflows and cut-down their costs.

A blockchain-driven trade finance solution involving a letter of credit, bill of lading, and multi-signature solutions will comprise the following features:

  1. Carriers provide a bill of lading as a digital asset on the blockchain
  2. Banks issue letter of credit on the blockchain as a digital asset
  3. Contracts based on multi-signatures
  4. Smart-contract-driven transactions to ensure transparency and speed

Take Away

Blockchain is poised to transform finance and banking, bringing greater speed, trust, transparency, and cost-efficiency to operations. Start-ups or banks planning to upgrade their current systems should have blockchain on their mind as its potential can bring significant value to the industry.

At Millennial Partners, we offer consultancy for enterprise blockchain, helping enterprises with complete blockchain implementation. We follow a coherent roadmap – from use-case development to solution implementation to deployment – to efficiently navigate the blockchain transformation journey for our clients.

Millennial Partners (millennial.ae) prides itself on serving clients’ most pressing organization transformational needs across people, processes, and technology through its own proprietary frameworks. Our digital transformation offering is most relevant to the increasingly digital enterprise and consumer environments. We follow a coherent roadmap that includes incorporating the most cutting-edge technologies and vendors focusing on technologies such as enterprise Blockchain, Artificial Intelligence, and IoT.

Should you have any questions and or would like some focused professional advice, please don’t hesitate to reach out via our e-mail at info@millennial.ae.