Kuwait and Qatar are the only two remaining GCC member countries which have delayed the implementation of the VAT system. The budget committee’s decision is not to implement the VAT before the year 2021, since they don’t see the need to expedite VAT for now.
Even though IMF has estimated that the revenues from VAT in the UAE may rake in 1.5% of GDP, Kuwait’s government has no immediate need for fresh revenue as its state finances are the strongest amongst the region.
As for the Qatar Ministry of Finance, it has stated that it is still evaluating the potential impacts of VAT introduction and therefore will not implement any VAT law in the year 2019.
What does this mean for you?
As the government of these two countries are in no hurry to implement VAT as of now, it does give businesses an advantage to plan their investment and expansion strategy around GCC countries. With time on their side, this will allow businesses to be prepared and ensure readiness and be VAT compliant.