Will VAT be applied soon in Qatar?!
A latest report by Qatar Tribune has revealed that the Value added Tax (VAT), which is expected to be introduced throughout the GCC by the end of this year, is unlikely to be implemented in Qatar.
It may be mentioned that countries comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE signed an agreement earlier that initiated the process of the introduction of VAT, across the GCC in 2018.
The Qatar Tribune report quoted Doha Bank Chief Executive Officer R Seetharaman, who said that the implementation of VAT in Qatar depends on several factors like the fiscal policy, revenue streams and commodity prices.
He added that the recent budget announced by Qatar is quite comprehensive, and thereby the VAT might be deferred here to assess how it works out in countries of the region where it’ll be implemented soon.
Saudi Arabia and UAE meanwhile have already started the VAT system from Thursday. The countries are levying 5 per cent to the majority of goods and services. The UAE estimates that in the first year, VAT income will be around 12b dirhams.