Expectations from Qatar VAT law
A simple guide to Qatar VAT law
Qatar VAT law is expected to be in force very soon. International Monetary Fund (IMF) believes that the new Qatar VAT regulation could add 2% to the GDP of Qatar.
Back in 2016, the Gulf Cooperation Council (GCC) took the decision of implementing VAT in the 6 GCC member countries, however Qatar VAT law is still not published as the country is not yet ready. Infrastructure readiness and political issue appear to be the major hurdle.
That said, sooner or later VAT will be implemented in all the GCC states and this article tries to uncover a few key aspects related to VAT based on learnings from implementation of VAT in the two GCC states:
- Expectations from the Qatar VAT law
- What would be the Impact of Qatar VAT regulation?
- How can a business prepare for the Qatar VAT law?
- Recommendation for small business
Of the 6-member nations, only UAE and Saudi Arabia implemented VAT on 1st of January 2018. In a recent report the IMF announced that Qatar, Qatar, Kuwait, Qatar are far from being prepared even by the beginning of 2019.
Expectations from the Qatar VAT law:
The new VAT regulation i.e., the new indirect tax regime in Qatar will be in line with other GCC member nations. The VAT frame work treaty among the member nations would form basis of domestic VAT legislation. The framework provides key principles of the VAT law, which needs to be followed by all the countries.
What would be the Impact of Qatar VAT regulation?
VAT will be applicable on almost all businesses except a few. A 5% VAT would be applicable on consumer durables, machinery, raw material, financial services etc.,
A few businesses that could be exempted from VAT would be treated under zero-rated tax category. Medicines, exports, education are a few sectors that may come under the exempted category.
How can a business prepare for the Qatar VAT law?
Whether small business or large business irrespective of size every business registered under VAT would be expected to comply with the VAT regulation. It’s better to prepare for VAT right now. Now is the time to align all your business operation and prepare yourself to transition your business smoothly to comply with VAT law without last minute rush.
Here is the infrastructure you need, to be fully ready to comply with the VAT regulation (you can get the PDF copy of the law from offical portal).
- Have a process in place to capture VAT paid on all purchases and expenses
- Build or buy a tool to prepare VAT compliant invoices
- Set-up process to summaries the VAT collected on invoices
- Build reporting to track real-time VAT liability i.e., the difference of VAT collected on sales and VAT paid on purchases/expenses
- Create process to ensure VAT returns are filed without any delay
- Train yourself and your staff to manage all the items listed above
Recommendation:
The best way to check all the items listed in the above list is to buy a software tool that lets you do everything required to be VAT complaint.
TopNotepad is one such software that is very simple to learn and is VAT ready. Businesses who needs to comply with Qatar VAT regulation can start using TopNotepad and start preparing for VAT right away, complete VAT guide.
Back in 2016, the Gulf Cooperation Council (GCC) took the decision of implementing VAT in the 6 GCC member countries, however Qatar VAT law is still not published as the country is not yet ready. Infrastructure readiness and political issue appear to be the major hurdle.
That said, sooner or later VAT will be implemented in all the GCC states and this article tries to uncover a few key aspects related to VAT based on learnings from implementation of VAT in the two GCC states:
- Expectations from the Qatar VAT law
- What would be the Impact of Qatar VAT regulation?
- How can a business prepare for the Qatar VAT law?
- Recommendation for small business
Of the 6-member nations, only UAE and Saudi Arabia implemented VAT on 1st of January 2018. In a recent report the IMF announced that Qatar, Qatar, Kuwait, Qatar are far from being prepared even by the beginning of 2019.
Expectations from the Qatar VAT law:
The new VAT regulation i.e., the new indirect tax regime in Qatar will be in line with other GCC member nations. The VAT frame work treaty among the member nations would form basis of domestic VAT legislation. The framework provides key principles of the VAT law, which needs to be followed by all the countries.
What would be the Impact of Qatar VAT regulation?
VAT will be applicable on almost all businesses except a few. A 5% VAT would be applicable on consumer durables, machinery, raw material, financial services etc.,
A few businesses that could be exempted from VAT would be treated under zero-rated tax category. Medicines, exports, education are a few sectors that may come under the exempted category.
How can a business prepare for the Qatar VAT law?
Whether small business or large business irrespective of size every business registered under VAT would be expected to comply with the VAT regulation. It’s better to prepare for VAT right now. Now is the time to align all your business operation and prepare yourself to transition your business smoothly to comply with VAT law without last minute rush.
Here is the infrastructure you need, to be fully ready to comply with the VAT regulation (you can get the PDF copy of the law from offical portal).
- Have a process in place to capture VAT paid on all purchases and expenses
- Build or buy a tool to prepare VAT compliant invoices
- Set-up process to summaries the VAT collected on invoices
- Build reporting to track real-time VAT liability i.e., the difference of VAT collected on sales and VAT paid on purchases/expenses
- Create process to ensure VAT returns are filed without any delay
- Train yourself and your staff to manage all the items listed above
Recommendation:
The best way to check all the items listed in the above list is to buy a software tool that lets you do everything required to be VAT complaint.
TopNotepad is one such software that is very simple to learn and is VAT ready. Businesses who needs to comply with Qatar VAT regulation can start using TopNotepad and start preparing for VAT right away, complete VAT guide.