The CEO of the largest privately owned port operator has said there needs to be greater clarity from GCC officials on how VAT legislation will be applied.
The CEO of Gulftainer, which operates two container terminals in the UAE, including Khor Fakkan, the second largest port in the region said there needs to be clarification on how value-added-tax (VAT) will be applied and rebated on land and sea transshipment cargo in the six GCC states.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, are expected to introduce VAT at a rate of 5 percent from January 2018, but few details have been released on how it would be applied to logistics operations.
Gulftainer CEO Flemming Dalgaard 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 told Gulf News.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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