What type of goods will be outside the scope of UAE VAT if sold in designated zone?
If the supplied goods meet any of the following conditions, then the supply will not be subject to VAT.
Goods that are incorporated into, attached to, or a part of another good that is not consumed and is located in the Designated Zone.
Goods that are used to produce another good, which is not consumed, if both of these goods are located in the Designated Zone. For example, the purchase of tools and equipment used to manufacture other goods will not be subject to VAT, if both are located in the Designated Zone.