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VAT Designated Zone

Certain free zones have been specified as designated zones for VAT purposes. While special rules apply to supplies made in the designated zones, the businesses established in such zones may still need to register for VAT provided the criteria for registration is met.

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Designated Zones are:

  • 1

    Subject to strict control criteria.

  • 2

    Required to have Customs procedures to control the movement of goods into and out of the designated zone.

  • 3

    Treated as being outside the territory of the UAE for VAT purposes for certain supplies of goods.

  • 4

    Required to have security procedures in place to control the movement of goods and people to and from the designated zone.

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Page last updated: : Jan 31, 2022
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