Gulftainer CEO says greater clarification needed on VAT
There needs to be greater clarity from GCC officials on how VAT legislation will be applied, says Gulftainer CEO Flemming Dalgaard.
The port operator, the largest privately owned company of its kind in the world, operates two container terminals in the UAE, including Khor Fakkan, the second largest port in the region.
Dalgaard, speaking to Gulf News, said there needs to be clarification on how value-added-tax (VAT) will be applied and rebated on land and sea transhipment cargo in the six Gulf Cooperation Council (GCC) states.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, are expected to introduce VAT at a rate of 5 per cent from January 2018, but few details have been released on how it would be applied to logistics operations.
Daalgard said it is unclear how VAT will be introduced and whether businesses would be rebated despite indications from the UAE federal government that firms would be reimbursed.
“Do I have to pay the import duty in the UAE then reclaim it after it has gone to Riyadh? Or will I even get it back?” he asked Gulf News rhetorically.