A Designated Zone is an area which is determined by the cabinet decision and that meets the conditions endorsed in the UAE Executive Regulation.
Applicability in DESIGNATED ZONE
Designated Zone is a VAT free Zone which is thought to be outside the State of UAE for the motive of VAT.
List of Designated Zone specified by a decision of the Cabinet in UAE:
| Designated Zone | |
| Dubai | Jebel Ali Free Zone (North-South) |
| Dubai Cars and Automotive Zone (DUCAMZ) | |
| Dubai Textile City | |
| Free Zone Area in Al Quoz | |
| Free Zone Area in Al Qusais | |
| Dubai Aviation City | |
| Dubai Airport Free Zone | |
| Abu Dhabi | Free Trade Zone of Khalifa Port |
| Abu Dhabi Airport Free Zone | |
| Khalifa Industrial Zone | |
| Sharjah | Hamriyah Free Zone |
| Sharjah Airport International Free Zone | |
| Ajman | Ajman Free Zone |
| Umm Al Quwain | Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port |
| Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road | |
| Ras Al Khaimah | RAK Free Trade Zone |
| RAK Maritime City Free Zone | |
| RAK Airport Free Zone | |
| Fujairah | Fujairah Free Zone |
| FOIZ (Fujairah Oil Industry Zone) |
VAT Impact of Designated Zone under various situations:
| Types of supplies | Form | TO | Taxability |
|---|---|---|---|
| Goods | Designated Zone | Designated Zone | Non-Taxable |
| Goods | Designated Zone | Mainland* | Taxable at 5% VAT |
| Goods | Mainland* | Designated Zone | Taxable at 5% VAT |
| Goods | Designated Zone | Oversea/GCC countries | Non-Taxable |
| Goods | Oversea/GCC countries | Designated Zone | Non-Taxable |
*Mainland here mention to put in UAE except the Designated Zones