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CEO says VAT applies to services at both Dubai Airports

Value added tax (VAT) will be applicable to all services provided by Dubai Airports at Dubai International Airport (DXB) and Al Maktoum International Airport (DWC), according to its chief executive officer.
Paul Griffiths, CEO, Dubai Airports.
Paul Griffiths, CEO, Dubai Airports.

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Value added tax (VAT) will be applicable to all services provided by Dubai Airports at Dubai International Airport (DXB) and Al Maktoum International Airport (DWC), according to its chief executive officer.

The six-nation Gulf Cooperation Council (GCC) bloc will implement five percent VAT from January 1, 2018.

“The GCC position is that VAT will be payable on all purchases whether they are made at the airports except where the passenger is leaving the GCC. And that’s our understanding at the moment,” Paul Griffiths told Arabian Business.

“We are obviously trying to clarify the position because when it gets introduced, which apparently is January next year, we obviously need to understand exactly that we all need to do to apply the appropriate policy.”

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When asked by Arabian Business if VAT will be applicable on all airport services, Griffiths said: “If it is consumed within the borders of the UAE ... yes, the services will be subject to VAT.”

He added that Dubai Airports was ready for implementing VAT and systems were being put in place.

In April, Bernard Creed, senior vice president, finance, Dubai Duty Free, told Arabian Business they were expecting products sold at Dubai airports to remain exempted from VAT.

In March, Finance Ministry officials told tax consultants of the possibility of a tourist refund scheme, but Creed admitted no such confirmation on the move was available.

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