Exporting to Qatar

Taxation

The UK and Qatar have signed a double taxation agreement, meaning the same income is not taxed twice.

Qatari companies are exempt from tax. However, foreign companies and any business activity carried out in Qatar are subject to a corporate income tax of 10%. This includes any services or consultancy contracts within the state as well as any gains on property.

VAT

If you’re registered for Value Added Tax (VAT) you can zero-rate VAT on most goods you export to Qatar.

There is presently no sales tax in Qatar.

Import and excise duties

Qatar is part of the Gulf Cooperation Council (GCC) customs union. The rate of duty on most items imported into the GCC is 5%.

Goods that compete with locally manufactured products attract higher rates of duty, such as steel (20%), cement (20%) and urea (30%).

There is a 100% tariff imposed on alcohol and tobacco products in Qatar. You should check you have paid excise duty on any alcohol, alcoholic drinks, energy products, electrical or tobacco products you send to Qatar.

Standards

Most Qatari product standards are based on those developed by the Gulf Standardization Organization. They’re based to some extent on international standards but don’t necessarily conform.

There are Qatar-specific standards relating to building, mechanical and food products. The Qatar General Organization for Standards and Metrology is responsible for standards.

Food packaging and labelling

Qatar enforces strict food labelling and packaging laws, and GCC shelf-life standards for some products. Products must arrive with at least half the shelf-life remaining.

Labels must be in Arabic only, or Arabic with an English translation. Products with English-only labels may be approved for import on a case-by-case basis.

Challenges

Challenges facing businesses operating in Qatar include bureaucracy, payment delays and a lack of transparency in the market. Foreign investment is restricted in some sectors.

You may wish to read the Foreign and Commonwealth Office Overseas Business Risk report for Qatar.

Intellectual Property

You should register your trademarks at the Qatar Intellectual Property Department - Trademark Office at the Ministry of Economy. Inventive designs or industrial models can also be registered under the Trade Mark Law.

Register at Qatar’s Copyright Office to protect inventions and literary and artistic works.

Payment terms

For advice about payment and finance in Qatar, talk to a bank or accountant. The DIT team in Qatar can help you find a financial adviser in Qatar.

Make sure you clearly specify payment terms in the contract with your customer or buyer. Any dispute will have to go through the Qatari legal system for resolution, which can be a lengthy, complicated process.

Partnership and agreements

You should sign a contract before undertaking any work or projects in Qatar.

To do business in Qatar you will need a local sponsor. There is also a requirement for a partnership split of 49% to 51% in favour of the Qatari national, with the foreign company bearing the greater risk.

Business culture

You’ll find some differences in Qatari and UK business culture, for example:

• Qatar is an Islamic country and follows sharia law
• although English is widely spoken, businesses in Qatar must use Arabic as the main language for issuing invoices, service lists, product labels and customer services
• establishing professional relationships is essential to securing business contracts
• the working week is Sunday to Thursday