Qatar is still, within the GCC and beyond, a VAT-free environment. But it is just a matter of time for this to change and it is expected that VAT will be part of the daily business environment by 2023.
Yet businesses will need to keep the introduction of VAT already now in their strategy. New contracts need to include VAT safe guards. Operational processes across all departments (procurement, legal, HR, Finance, logistics, IT) should already be reviewed and updated. Any planned upgrades or roll-out of new ERPs and Finance tools need to have the VAT functionalities planned in.
Already now, VAT optimization planning (to secure margins and cash flow) can be done and is considered best practice. Qatar is bound to follow the GCC VAT Framework and the optional policy decisions can be factored in to already now plan for business strategy updates.
The continuous and growing impact of VAT here in Qatar for the future, but already now with customs & excise duties, on business operations should not be underestimated. Poor indirect tax planning and ongoing management can squeeze cash flow, allow over or underpayment of tax and result in penalties for non-compliance. Furthermore, given the frequent changes of business models and supply chains, the increasing existing regulations around customs & excise duties and international trade, and the changing geopolitical and regulatory environment, the management of indirect taxes is generally becoming more challenging.
Do you have a good understanding of the indirect tax aspects of your operations, including around the upcoming introduction of VAT? Do your internal processes adequately facilitate your (future) indirect tax compliance? Do these processes fit into your broader tax compliance approach? Or have you encountered a complex (international) matter that needs to be resolved?
Our tax advisors are ready to assist you with all types of indirect taxes, including value added tax, customs & excise duties. We can assist you with fulfilling your reporting obligations, advise you on how to improve your compliance, and stand by you through complex cases and tax audits.
We have experts with industry specific knowledge that understand your business and the wider context of your indirect tax queries. As part of the global Mazars network, we are also able to call upon the experience of our accountants, lawyers, and business consultants both in Qatar and worldwide, to provide you with the best possible service.