Kuwait and Qatar are the only 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 this year..
The IMF has estimated that the revenues from VAT in the UAE may equate to 1.5% of GDP, but Kuwait’s government has no immediate need for fresh revenue with state finances that are the strongest amongst the region.
The Qatar Ministry of Finance, stated that it is still evaluating the potential impacts of VAT introduction and therefore did not implement any VAT law in the year 2019. Qatar said in December that it plans to spend 1.9 percent more in 2020 than in 2019, outlining a 210.5 billion Qatari riyal ($58bn) budget and a reduced budget surplus.
As the government of these two countries are in no hurry to implement VAT as of now, businesses have time to plan their investment and expansion strategy and to be prepared and ensure readiness and be VAT compliant.
