Designated zone in UAE VAT
Designated zone VAT Treatment in the UAE: To know the VAT treatment on the designated zone in the UAE should be clear about what is a designated zone in the UAE? Well a designated zone in the UAE is some specific areas that are considered to be outside UAE territory for VAT purposes. A supply made from inside or outside of a designated zone is VAT-free with some exceptions.
What is the difference between a Free zone and a Designated zone in the UAE?
As mentioned above a Designated zone is some specific areas in the UAE which considered outside of UAE territory for VAT purposes. While the Free zones are designated especially to promote international business. However, some free zones are specified as the designated zone for Value Added Tax purposes.
Designated zone VAT Treatment in the UAE
A designated zone is some areas in the UAE which is considered outside UAE for the purpose of VAT treatment by the UAE cabinet decision. A supply made from inside or outside of a designated zone is VAT-free with some exceptions.
| Supplies | From | To | VAT -5% |
| Goods/ commodities | Mainland | Designated zone | Applicable 5% |
| Goods/ commodities | Designated zone | Mainland | Applicable5% |
| Goods/ commodities | Designated zone | Designated zone | Non-Taxable / Not applicable |
| Goods/ commodities | Designated zone | GCC countries / Overseas | Non-Taxable / Not applicable |
| Goods/ commodities | GCC countries / Overseas | Designated zone | Non-Taxable / Not applicable |
List of Designated Zones in the UAE – for VAT Purpose
| In Dubai | Effective from | Effective to |
| Jebel Ali Free Zone (NorthSouth) | 01/01/2018 | – |
| Dubai Cars and Automotive Zone (DUCAMZ) | 01/01/2018 | – |
| Dubai Textile City | 01/01/2018 | 04/04/2021 |
| Free Zone Area in Al Quoz | 01/01/2018 | 01/07/2021 |
| DAFZA Industrial Park Free Zone – Al Qusais | 01/01/2018 | – |
| Dubai Aviation City | 01/01/2018 | – |
| Dubai Airport Free Zone | 01/01/2018 | – |
| International Humanitarian City – Jebel Ali | 18/06/2018 | – |
| Dubai CommerCity | 01/01/2021 | – |
| In Abu Dhabi | Effective from | Effective to |
| Free Trade Zone of Khalifa Port | 01/01/2018 | – |
| Abu Dhabi Airport Free Zone | 01/01/2018 | – |
| Khalifa Industrial Zone | 01/01/2018 | – |
| Al-Ain International Airport Free Zone | 18/06/2018 | – |
| Al Butain International Airport Free Zone | 18/06/2018 | – |
| In Sharjah | Effective from | Effective to |
| Hamriyah Free Zone | 01/01/2018 | – |
| Sharjah Airport International Free Zone | 01/01/2018 | – |
| In Ajman | Effective from | Effective to |
| Ajman Free zone | 01/01/2018 | – |
| In Ras Al Khaima | Effective from | Effective to |
| RAK Port Free Zone | 01/01/2018 | – |
| RAK Maritime City Free Zone | 01/01/2018 | – |
| RAK Airport Free Zone | 01/01/2018 | 04/07/2019 |
| Al Hamra Industrial Zone – Free Zone | 04/07/2019 | – |
| Al Ghail Industrial Zone – Free Zone | 04/07/2019 | – |
| Al Hulaila Industrial Zone – Free Zone | 04/07/2019 | – |
| In Umm Al Quwain | Effective from | Effective to |
| Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port | 01/01/2018 | – |
| Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road | 01/01/2018 | – |
| In Fujairah | Effective from | Effective to |
| Fujairah Free Zone | 01/01/2018 | – |
| FOIZ (Fujairah Oil Industry Zone) | 01/01/2018 | – |
Related Links
Exempt Supplies in the UAE | VAT on consultancy services | VAT on Free zone companies | VAT Registration in the UAE | VAT on Export from UAE to GCC Countries | Audit Services