VAT Applicability in Designated Zones

Any Designated Zone specified by a decision of the Cabinet shall be treated as being outside the State, subject to the following conditions:

  • The Designated Zone is a specific fenced geographic area and has security measures and Customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area.
  • The Designated Zone shall have internal procedures regarding the method of keeping, storing and processing of goods therein.
  • The operator of the Designated Zone complies with the procedures set by the Authority.

Even if an area is identified as a Designated Zone, it is not automatically treated as being outside the UAE for VAT purposes. There are many criteria that need to be met in order for a Designated Zone to be treated as outside the UAE for VAT purposes.

List of Designated Zones

Following are the List of Designated Zones specified by a decision of the Cabinet:-

Designated Zones (Abu Dhabi)

  1. Free Trade Zone of Khalifa Port
  2. Abu Dhabi Airport Free Zone
  3. Khalifa Industrial Zone

Designated Zones (Dubai)

  1. Jebel Ali Free Zone (North-South)
  2. Dubai Cars and Automotive Zone (DUCAMZ)
  3. Dubai Textile City
  4. Free Zone Area in Al Quoz
  5. Free Zone Area in Al Qusaiz
  6. Dubai Aviation City
  7. Dubai Airport Free Zone

Designated Zones (Sharjah)

  1. Hamriyah Free Zone
  2. Sharjah Airport International Free Zone

Designated Zones (Ajman)

  1. Ajman Free Zone

Designated Zones (Umm Al Quwain)

  1. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
  2. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road

Designated Zones (Ras Al Khaimah)

  1. RAK Free Trade Zone
  2. RAK Maritime City Free Zone
  3. RAK Airport Free Zone

Designated Zones (Fujairah)

  1. Fujairah Free Zone
  2. FOIZ (Fujairah Oil Industry Zone)

 

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