What are the VAT rates in Free Zones?
Free zones are treated similarly to the mainland under VAT.
| Type of supply | VAT rate |
|---|---|
| Supplies of goods between businesses in designated zones | Considered outside VAT system |
| Supplies of services between businesses in designated zones | VAT rate dependent on service, regardless of location |
| Supplies of goods and services in non-designated zones | VAT rate dependent on good/service, regardless of location |
| Supplies of goods and services from mainland to designated zones | VAT rate dependent on good/service, regardless of location |
| Supplies of goods and services from designated zones to mainland | VAT is collected by the mainland importer and paid to the government as a reverse charge |