According to the chief executive officer, Value added tax (VAT) will be applicable to all services provided by Dubai Airports at two Airports namely, Dubai International Airport (DXB) and Al Maktoum International Airport (DWC).
The five percent VAT is scheduled has implemented from January 1, 2018, via six-nation Gulf Cooperation Council (GCC) bloc.
“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 this year, we obviously need to understand exactly that we all need to do to apply the appropriate policy.”
When asked if VAT will be applicable to all airport services, Griffiths said: “If it is consumed within the borders of the UAE … yes, the services will be subject to VAT.”
Adding further he said that the Dubai Airports were ready for VAT implementation and the systems have been arranged accordingly.
In April, Bernard Creed, senior vice president, finance, Dubai Duty-Free, told Arabian Business they were looking for the exception of VAT over products sold at Dubai airports.
In March, Finance Ministry officials mentioned a tourist refund scheme in the presence of tax consultants but the thing didn’t work out and there was no confirmation.