Taxation remains to be the source of revenues all over the world. The percentage of taxation, orbit and overall scope might differ from nation to nation. Based on the suitability of the structure and availability of the various avenues to generate revenues, taxation is applied in various nations. Especially in the countries like GCC, the taxation has always been a secondary source of generation of revenue. The reason being, the oil based revenues dominate the chart till recent past. On an average, more than 90% of the revenue requirement of the GCC nations has been met by the sale of crude oil. However, with the recent price falls in the oil market in late 2014, recently entered non OPEC oil producing and selling nations in the market and the rising of public welfare and infrastructural costs for the GCC nations, the scenario has been changing. Gulf countries have started thinking seriously on the taxation as a source of revenue for their economies. Accordingly, one of the commonly levied indirect taxes in the form of Value Added Tax (VAT) is approved by the Gulf Council and most of the nations are planning to apply the same from 2018 onwards. As United Arab Emirates and Saudi Arabia have already started levying the VAT, Sultanate of Oman is not an exception. The volatility of the oil prices and rapidly exhausting oil reserves all over the world have also been the crucial factors for the Gulf countries to think on the taxation as a source of revenue. Accordingly, the new era of taxation in the Sultanate of Oman is expected to begin with the introduction of VAT from January 2019 onwards. The immediate perception of introduction of new tax to any stakeholder for the nation is naturally the increased costs. The same is also observed in Oman. However, the implementation, phases, exact effect on costs and profitability, probable changes in the Accounting and Auditing services, impact on consumption, investment and savings patterns and last but not the least, the exact costs to be borne by the companies are all the factors which remain unknown or at least less known. This research is an attempt to throw some light on the perceptions, perspectives and thought processes of the financial regulators and the ultimate burden bearers of the tax. Accordingly, the opinions of Auditors and perception of consumers are sought to complete the research. Even though VAT as a concept is well proven, the impact of the same on Oman’s economy and budgets of the consumers will be known only when the VAT is implemented in Oman.

Taxation remains to be the source of revenues all over the world. The percentage of taxation, orbit and overall scope might differ from nation to nation. Based on the suitability of the structure and availability of the various avenues to generate revenues, taxation is applied in various nations. Es...