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Frequently Asked Questions on VAT

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What requirements should a Designated Zone meet to be treated as a territory outside the UAE for VAT purposes?

A Designated Zone must be a specific fenced area, in addition to meeting all of the following requirements:

  • It must adhere to strict control criteria laid out by the government.
  • The operator must keep detailed records of goods supplied.
  • Security and customs procedures must have been implemented to control the movement of goods and people within the designated zone.
  • Internal procedures should be followed related to keeping, storing and processing of goods within the area. 
  • The operator of a Designated Zone must adhere to the procedures set out by the FTA. 

If a Designated Zone changes the way it operates, or does not meet any of the criteria mentioned above, then it will be considered a part of the UAE for VAT purposes. 

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