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Understanding Designated Zones for VAT in the UAE

Understanding Designated Zones for VAT in the UAE

by | Aug 9, 2024 | Corporate Tax, VAT

In accordance with Federal Decree-Law No. 8 of 2017 on Value Added Tax and subsequent Cabinet Decisions, specific designated zones in the UAE are treated as outside the UAE for VAT purposes. This status provides significant tax benefits for businesses operating within these zones.

Abu Dhabi

  1. Free Trade Zone of Khalifa Port – Effective from 01/01/2018
  2. Abu Dhabi Airport Free Zone – Effective from 01/01/2018
  3. Khalifa Industrial Zone – Effective from 01/01/2018
  4. Al Ain International Airport Free Zone – Effective from 18/06/2018
  5. Al Butain International Airport Free Zone – Effective from 18/06/2018

Dubai

  1. Jebel Ali Free Zone (North-South) – Effective from 01/01/2018
  2. Dubai Cars and Automotive Zone (DUCAMZ) – Effective from 01/01/2018
  3. Dubai Textile City – Effective from 01/01/2018 to 04/04/2021
  4. Free Zone Area in Al Quoz – Effective from 01/01/2018 to 01/07/2021
  5. DAFZA Industrial Park Free Zone – Al Qusais – Effective from 01/01/2018
  6. Dubai Aviation City – Effective from 01/01/2018
  7. Dubai Airport Free Zone – Effective from 01/01/2018
  8. International Humanitarian City – Jebel Ali – Effective from 18/06/2018
  9. Dubai CommerCity – Effective from 01/01/2021

Sharjah

  1. Hamriyah Free Zone – Effective from 01/01/2018
  2. Sharjah Airport International Free Zone – Effective from 01/01/2018

Ajman

  1. Ajman Free Zone – Effective from 01/01/2018

Umm Al Quwain

  1. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port – Effective from 01/01/2018
  2. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road – Effective from 01/01/2018

Ras Al Khaimah

  1. RAK Port Free Zone – Effective from 01/01/2018
  2. RAK Maritime City Free Zone – Effective from 01/01/2018
  3. RAK Airport Free Zone – Effective from 01/01/2018 to 04/07/2019
  4. Al Hamra Industrial Zone – Free Zone – Effective from 04/07/2019
  5. Al Ghail Industrial Zone – Free Zone – Effective from 04/07/2019
  6. Al Hulaila Industrial Zone – Free Zone – Effective from 04/07/2019

Fujairah

  1. Fujairah Free Zone – Effective from 01/01/2018
  2. Fujairah Oil Industry Zone (FOIZ) – Effective from 01/01/2018

Source: FTA – List of Designated Zones