Value-added tax (VAT) is a consumption tax placed on goods or services whenever the value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that has already been taxed. To incorporate VAT in business, companies requires specialize and professional VAT service from an experienced firm like Aviaan Accounting, we offer:

• VAT registration and VAT filing service
• VAT implementation
• VAT personnel training
• Modification in system to incorporate VAT
• VAT planning

Qatar is planning to implement a 5% VAT regime from 1 April 2021 as Qatar seeks to rebalance its reliance on oil revenues. Qatar and representatives of the other Member States of the Gulf Cooperation Council (GCC) confirmed the introduction of a VAT law across all six Member States through the signing of a VAT Framework in 2017. The Treaty acts as the basis for the VAT legislation in each Member State by stipulating certain principles. It must be followed by all members while allowing the countries to opt for different VAT treatments concerning some supplies.

Value-added tax (VAT) is a consumption tax placed on goods or services whenever the value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that has already been taxed. Qatar is planning to implement a 5% VAT regime from 1 April 2021 as Qatar seeks to rebalance its reliance on oil revenues.

Qatar and representatives of the other Member States of the Gulf Cooperation Council (GCC) confirmed the introduction of a VAT law across all six Member States through the signing of a VAT Framework in 2017. The Treaty acts as the basis for the VAT legislation in each Member State by stipulating certain principles. It must be followed by all members while allowing the countries to opt for different VAT treatments concerning some supplies.

VAT Framework Treaty provides that VAT on the supply of goods or services within the scope of VAT will be charged at a rate of 5% unless the goods or services are exempt or zero-rated. The Member States have been granted the flexibility to choose whether the supply of specific goods or services is considered as zero-rated or exempt. 

The distinction between zero-rating and exemption is an important one; in both cases, VAT in Qatar must not be accounted for on the supply, a supplier making exempt supplies is generally not allowed to recover input VAT concerning such supplies. Recovery of input VAT incurred concerning zero-rated supplies is generally allowable.