VAT on Free Zones in UAE

What is Free Zone in UAE?

Free Zone, moreover known as Free Exchange Zone, is an zone planned to advance the universal commerce in UAE by giving 100% outside venture possession. Free Zones offer alluring motivating forces such as no necessity for a UAE national as a neighborhood partner/shareholder, charge exclusions on obligations and charges such as Corporate, Individual Pay Charge, all consequence and send out obligations etc. The businesses in Free Zones are required to get the fundamental licenses from the particular Free Zone specialists and comply with their rules when working the trade in this locale.

Each emirate in UAE incorporates a assigned zone as a Free Zone. There are more than 35 Free Zones working in UAE such as Jebel Ali Free Zone, Dubai Web City Free Zone, Dubai Air terminal Free Zone etc.

Free Exchange Zone in VAT services Regime

To begin with and preeminent point which businesses got to take note is that ‘All Free Zone’ may not be a ‘VAT Free Zone’. This is often apparent from the definition and arrangements characterized within the UAE VAT Law and Official Controls. In UAE VAT law, VAT Free Zones are called ‘Designated Zones’ and the official control endorses the conditions which a Assigned Zone ought to fulfil.

What may be a Assigned Zone?

Designated Zone alludes to an area specified by a cabinet choice which meets the conditions indicated within the Official Direction. For the reason of VAT Registration , a Assigned Zone will be treated as being exterior the state and any supplies between Assigned Zones will not pull in VAT at 5%.

What are the conditions for Assigned Zone?

The Assigned Zone specified by the cabinet choice ought to meet the taking after conditions in arrange to be considered as being exterior the State and as well as execution States:

Assigned Zone Ought to be inside a particular fenced geological zone

It ought to have security measures and traditions controls in place to screen the passage and exit of people and the development of merchandise to and from the area

It ought to have inside strategies with respect to the method of keeping, putting away and handling of Products with the Assigned Zone

The administrator of the Assigned Zone ought to comply with the strategies set by the Specialist

The over are conditions which a Assigned Zone must compulsorily comply. If there are any changes in the manner of working or if businesses found in these zones now not meet any of the conditions required to qualify as a Assigned Zone, it might be treated as being interior the State, and will be treated at standard with the businesses found exterior the Assigned Zone.

List of Assigned Zone in UAE

Emirate Assigned Zone

Abu Dhabi Airplane terminal Free Zone

Khalifa Mechanical Zone

Dubai Jebel Ali Free Zone (North-South)

Dubai Cars and Car Zone (DUCAMZ)

Dubai Material City

Free Zone Region in Al Quoz

Free Zone Range in Al Qusais

Dubai Flying City

Dubai Air terminal Free Zone

Sharjah Hamriyah Free Zone

Sharjah Air terminal Universal Free Zone

Ajman Ajman Free Zone

Umm Al Quwain Umm Al Quwain Free Exchange Zone in Ahmed Bin Rashid Harbour

Umm Al Quwain Free Exchange Zone on Sheik Mohammed Canister Zayed Street

Ras Al Khaimah RAK Free Exchange Zone

RAK Oceanic City Free Zone

RAK Air terminal Free Zone

Fujairah Fujairah Free Zone

FOIZ (Fujairah Oil Industry Zone)

You can also Register for VAT Registration on our website: 


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