FISCAL SOLUTIONS...
News
Public Other countries Author: Ema Stamenković
Qatar is implementing a modern, transparent, and digitized tax system to align with a globalized economy. Main reforms include strengthening the General Tax Authority, preparing for a 5% VAT under the GCC VAT Framework Agreement, and exploring electronic invoicing.
Category:

General information

Views: 19
Content accuracy validation date: 30.06.2025
Content accuracy validation time: 12:45h

Qatar is shifting toward a modern, transparent, and digitized tax system to align with a globalized, less hydrocarbon-dependent economy, as outlined in its Qatar National Vision 2030. Historically, substantial oil and LNG revenues allowed a low-tax model, funding infrastructure, subsidies, services, and welfare without significant taxation. However, volatility in energy markets, climate change, and the push for clean energy have exposed vulnerabilities, prompting fiscal reforms to diversify revenue and modernize tax administration.

Significant reforms include strengthening the General Tax Authority (GTA), preparing for a 5% Value-Added Tax (VAT) under the 2016 GCC VAT Framework Agreement, and exploring electronic invoicing. The GCC agreement, signed by Saudi Arabia, UAE, Kuwait, Bahrain, Oman, and Qatar, promotes a harmonized VAT, common guidelines, and regional integration to avoid double taxation. VAT is active in Saudi Arabia (2018, now 15%), UAE (2018), Bahrain (2019), and Oman (2021). Qatar’s VAT law (2018) awaits implementation, with the GTA conducting trials and business consultations.

Electronic invoicing, though not yet implemented, is a priority for Qatar’s digital transformation. The GTA is consulting with tech providers and main sectors to build a scalable, secure system, likely aligning with VAT rollout. E-invoicing, already mandatory in Saudi Arabia (2021) and Egypt, and in pilot phase in the UAE, enhances tax compliance and transparency.

Other news from Other countries