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Applicability in DESIGNATED ZONE

A Designated Zone is an area which is determined by the cabinet decision and that meets the conditions endorsed in the UAE Executive Regulation.

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
DubaiJebel 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 DhabiFree Trade Zone of Khalifa Port
Abu Dhabi Airport Free Zone
Khalifa Industrial Zone
SharjahHamriyah Free Zone
Sharjah Airport International Free Zone
AjmanAjman Free Zone
Umm Al QuwainUmm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
Ras Al KhaimahRAK Free Trade Zone
RAK Maritime City Free Zone
RAK Airport Free Zone
FujairahFujairah Free Zone
FOIZ (Fujairah Oil Industry Zone)

VAT Impact of Designated Zone under various situations:

Types of suppliesFormTOTaxability
GoodsDesignated ZoneDesignated ZoneNon-Taxable
GoodsDesignated ZoneMainland*Taxable at 5% VAT
GoodsMainland*Designated ZoneTaxable at 5% VAT
GoodsDesignated ZoneOversea/GCC countriesNon-Taxable
GoodsOversea/GCC countriesDesignated ZoneNon-Taxable

*Mainland here mention to put in UAE except the Designated Zones