IBM cancels Iceland investment due to procrastination

Some of the companies planning to store data at Verne Holding’s new Icelandic data centre, including the computer giant IBM, have cancelled their investments outright. At issue is (it is claimed) how badly the Icelandic finance ministry is dealing with technical difficulties surrounding VAT.

This was the assessment of Independence Party MP Ragnheidur Elin Arnadottir in the Althingi parliament yesterday. she went on to say she fears developments at the expensive new data centre could grind to a halt completely over the issue of Value Added Tax.

Skuli Helgason, chair of the parliamentary industry committee, said that Arnadottir’s concerns are entirely reasonable, Frettabladid reports.

Apparently Verne Holding representatives were taken off guard to find out that they do not enjoy a level playing field with European Union data centres when it comes to the application of VAT to net servers imported by the companies intending to use them. That issue needs resolving quickly, they say.

Comments are closed.