20 Freezones Are Exempted From VAT
The 20 designated free zones are exempt from VAT. The designated zones are special zones for VAT purposes, which are generally considered outside of the UAE in terms of value-added taxation. While VAT applies throughout the UAE, in the designated 20 free zones VAT generally does not apply. The selected 20 free zones from 45 free zones in the country qualifies for transfer of goods between them not be subject to tax. As expected, important free zones such as Jafza, Dafza and Kizad are on the list.
Also Read: Your Ultimate Guide to Free Zones in Dubai in 2021
According to tax experts, acquisition of goods within a designated zone for incorporation into another unconsumed good located within the same designated zone will not be subject to UAE. Goods may also be transferred between Designated Zones without being subject to tax if the goods are not used or altered during the transfer process.
Also Read: How VAT Affects The Companies In Uae
Free Zones Which Are Exempt From VAT in UAE
In Dubai
Jebel Ali Free Zone(North-South) Dubai Cars and Automotive Zone (DUCAMZ) Dubai Textile City Free Zone Area in Al Quoz Free Zone Area in Al Qusais Dubai Aviation City Dubai Airport Free Zone
In Abu Dhabi
Free Trade Zone of Khalifa Port Abu Dhabi Airport Free Zone Khalifa Industrial Zone
In Sharjah
Hamriyah Free Zone Sharjah Airport International Free Zone
In Ajman
Ajman Free Zone
In Umm Al Quwain
Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port Umm Al Quwain Free Trade Zone on Sheikh Mohammed bin Zayed Road
In Ras Al Khaimah
RAK Free Trade Zone RAK Maritime City Free Zone RAK Airport Free Zone
In Fujairah
Fujairah Free Zone Fujairah Oil Industry Zone (FOIZ)Also Read : How do Free Zones Help in Setting up a Business in Dubai?
Freezones are an excellent opportunity to start a business, contact us soon to grab your opportunity today!