On 23 May 2019, Qatar’s General Tax Authority (GTA) disclosed to tax advisors in Qatar a new online tax management system known as “Dhareeba.” The new system should be available to taxpayers near the end of 2019, with all taxpayers expected to be registered before 1 January 2020, at which time Dhareeba will replace the current Tax Administrative System (TAS). PwC Qatar was invited to go through its own registration as a ‘pilot’ exercise during the last week of July 2019.
The Qatar General Tax Authority (‘GTA’) has redesigned the Tax website, allowing it to be operational in both English and Arabic. The website aims to provide vital information regarding any new taxes which may be implemented, particularly emphasizing the Excise Tax which came into effect on January 2019.
VAT is widely expected to be introduced on 1 Jan 2020. Synergy support several companies in Qatar and has a local registered company there. If you need assistance with planning VAT implementation for Dynamics Ax./Dynamics 365 Finance and Operations, or Infor SunSystems then please contact us. we have already undertaken numerous VAT projects In the GCC.
You will find much useful advice in our previous blog posts.
Meanwhile today the International Monetary Fund (IMF) has suggested that the value-added tax (VAT) should be doubled from 5% to 10% in Saudi Arabia in consultation with the other Gulf countries. Analysts expect the hike in VAT rate will come only after 2021 once Kuwait and Oman will also be ready to implement it and as a customs union, the increase makes sense across the GCC countries.
The UAE and Saudi Arabia introduced the 5% value-added tax from January 2018 and both the countries surpassing their tax collection targets. So this proposed increase seems odd because it has already impacted businesses more than expected.
The Kingdom’s non-oil revenues last year increased by 59%, buoyed by the VAT, excises, expatriate levy, and proceeds from the settlement agreements. IMF estimated that the VAT rate increase will add 2.0% to the Kingdom’s GDP in 2024.
Of course, as a customs union, it is logical that GCC countries would seek to keep their VAT rates harmonized in order to prevent tax arbitrage opportunities emerging within the GCC.
