APPLICATION OF VAT IN SULTANATE OF OMAN – STRUCTURAL EQUATION MODELLING APPROACH

Sultanate of Oman implemented VAT since April 2021. The value added tax are expected to increase the cost of living in general and the people of a country have to face the consequences. The country like Sultanate of Oman, which are having high average of economic status, the government can bear the burden of such taxation. To measure the impact of implemented VAT in Sultanate of Oman, a detailed study was conducted using 16 factors that could have impact on the implementation. The variables were analysed structural equation model. The study showed that the implementation of VAT had significant impact on financial system, economic development and socioeconomic standards of people living in Sultanate of Oman