Qatar VAT delayed till 2021
- Dec 19, 2019 | Richard Asquith
The Gulf state of Qatar has published its 2020 budget without any plans to implement Value Added Tax. The state is committed with the five other states of the Gulf Cooperation Council to launch a harmonised 5% VAT union by 2021. To date, only Saudi Arabia, UAE and Bahrain have introduced the consumption tax.
Key features of the eventual Qatari regime will include:
- VAT law and supporting Executive Regulations
- Registration threshold of QAR364,000
- VAT rates of 5% and 0% (exports, medicines, international transport)
- Imports subject to VAT
- Exemptions for financial services, and real estate
- Monthly VAT reporting
Qatar is expecting to have a budgetary surplus in 2020 based on a target price of $55 per barrel (currently $60).
Politically, Qatar has drifted apart from the other Gulf sates amid divisions over security matters.