As per Article 45 of the federal decree law no. (8) of 2017 on VAT any direct or indirect export to outside the concerned state as specified in decree law is zero rated. Zero rated supplies shall mean that goods are still VAT taxable but the rate of VAT is 0%. You will need to record any zero rated supplies in your VAT account and report them on your tax returns.

Free zones are the zones wherein goods and services are sent for the purpose of export and they are not pursuant to tax that is zero rated VAT as they fall under indirect export. Designated zones are specified as an area by the Cabinet Decision issued at the recommendation of the minister, as a designated zone for the purpose of export.

Indirect export shall mean any export of goods to a designated zone outside of the implementing states, where the customer of the concerned state is responsible for collection of the goods in the state and who exports the goods himself, or had appointed an agent to do so on his behalf.

The Free zones in UAE are as follows:

  1. Ajman
    • Ajman Free Zone
  2. Ras Al Khaimah
    • RAK Investment Authority Free Zone
    • Ras Al Khaimah Free Trade Zone
    • Ras Al Khaimah Media Free Zone
  3. Fujairah
    • Fujairah Free Zone
  4. Umm Al Quwain
    • Umm Al Quwain Free Trade Zone (UAQFTZ)
  5. Dubai
    • Dubai Airport Free Zone
    • Dubai Biotechnology & Research Park (DuBiotech)
    • Dubai Car and Automotive City Free Zone (DUCAMZ)
    • Dubai Design District
    • Dubai Gold and Diamond Park
    • Dubai Healthcare City
    • Dubai Industrial City (DIC)
    • Dubai International Academic City
    • Dubai International Financial Centre
    • Dubai Internet City (DIC)
    • Dubai Knowledge Village
    • Dubai Logistics City
    • Dubai Media City
    • Dubai Multi Commodities Centre or Jumeirah Lakes Towers Free Zone
    • Dubai Outsource Zone
    • Dubai Silicon Oasis
    • Dubai Studio City
    • Dubai Techno Park
    • Dubai Technology and Media Free Zone
    • International Media Production Zone
    • Jebel Ali Free Zone
    • Economic Zones World
    • Dubai Academic City
  6. Sharjah
    • Hamriyah Free Zone
    • Sharjah Airport International Free Zone
    • U.S.A. Regional Trade Center (USARTC) Free Zone
    • Sharjah Media City Free Zone
  7. Abu Dhabi
    • Abu Dhabi Airport Free Zone (ADAFZ)
    • Abu Dhabi Global Markets (ADGM)
    • ADPC – Khalifa Port and Industrial Zone (KPIZ)
    • Twofour54
    • Industrial City of Abu Dhabi
    • Higher Corporation for Specialized Economic Zones
    • Masdar City Free Zone

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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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