UAE VAT Designated Zones Defined
The UAE Ministry of Finance has released Cabinet decision No. 59 of 2017 specifying all Designated Zones to be effective from 1 January 2018 for the purposes of implementing the Designated Zone provisions in Federal Decree Law No 8 of 2017 on Value Added Tax.
The Cabinet has the authority to amend the list of Designated Zones as required.
A Designated Zone is required to be a specific fenced area with security measures and Customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area.
Concessional VAT treatment may be available for transactions involving the supply of physical goods within Designated Zones. No VAT concessions are available for transactions involving the supply of services within Designated Zones.
The list of Designated Zones for UAE VAT purposes are as follows:
No. Designated Zones (Abu Dhabi)
No. Designated Zones (Dubai)
No. Designated Zones (Sharjah)
No. Designated Zones (Ajman)
1. Ajman Free Zone
No. Designated Zones (Umm Al Quwain)
No. Designated Zones (Ras Al Khaimah)
No. Designated Zones (Fujairah)
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