Certain free zone areas in the UAE are specified as 'designated zones'.
The following rules apply to supplies related to designated zones.
| Type of supply | VAT treatment |
| Supply of goods within the same designated zone | The supply is outside the scope of VAT, provided the goods are not consumed in the designated zone |
| Supply of goods within the same designated zone to be consumed by the recipient or another person | The supply is treated as being made within the UAE and will be subject to VAT at the applicable rate of VAT |
| Transfer of goods between two different designated zones | The supply |
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Web page updated on 17 Mar 2025 17:03