Lima is one of the leading Tax Consultancy firms in the region with specialties in auditing, taxation, accounting and business advisory. Our commitment to “Always Doing the Right Thing” with integrity and values for last 30 years have enabled us to establish strong relationships with all the stakeholders which resulted in our expansion to Kuwait, Bahrain, Saudi Arabia, Oman, Qatar and India after setting up the head office in UAE. We follow partner led approach to ensure personal attention is delivered to our clients.

Lima take pride in solving important problems with high level of ethics to build trust in the society. We help organisations and individuals create the value they’re looking for, by delivering quality in assurance, tax and advisory services.

Qatar was expected to introduce a VAT system in 2019. And implementation has been revealed by the Qatari tax authorities. Previously, there was caution in Qatar around the introduction of the VAT.

Lima has experts personnel who will go through every detail of the new VAT Law in Oman and make sure your business does not have to engage in any non-compliance with regulations.

After UAE, KSA, and Bahrain, Oman has also introduced VAT Law. For all Oman companies, it’s time to take action and be prepared for VAT in Oman transition. VAT Law is generally self-assessed with a high probability of error leading to penalties along with time-consuming interaction with Oman Tax Authority causing business disruption. It is hence imperative that you appoint a qualified VAT Consultant in Oman.

Accounting and Audit Compliance in Qatar

Accounting standards used in Qatar, the Commercial Law No. 5 of 2002 requires all listed companies to prepare consolidated and separate company financial statements “in accordance with the accounting principles approved internationally”. Regulations of the Qatar Financial Markets Authority have defined this to mean IFRS Standards.

Accounting Regulation Bodies Qatar Financial Markets Authority (QFMA), Ministry of Economy and Commerce, Qatar Exchange.

Qatar’s market is constantly evolving and shareholders, boards, business leaders and other stakeholders need to have confidence in the reliability and integrity of their financial information. This is where KPMG comes in.

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.

VAT Action Plan for Businesses in Qatar

Assess VAT readiness with VAT and develop a plan to identify the steps necessary to be ready to submit VAT returns in Qatar.

Understand your transaction to determine all future VAT liabilities and compliance obligations.

Review and update contractual arrangements with vendors and customers to determine each party is aware of its responsibilities for paying and accounting for VAT.

Develop or Purchase software to prepare VAT-compliant invoices in Qatar and incorporate a process to summaries the VAT collected on invoices.

Educating and Training staff to manage all of the above activities.

Key features of Qatar VAT regime

VAT law and Executive Regulations.

Registration threshold of QAR 364,000.

Zero-rated for exports, medicines, and international transport.

Exemptions for financial, and real estate services.

Imports subject to VAT in Qatar.

Monthly VAT reporting in Qatar.