Designated Zones (DZ) — such as JAFZA, DAFZA, KIZAD, Airport Free Zones — are treated as outside the UAE for VAT on goods (not services). Getting the boundary right saves 5% on every move.
How designated zones work for goods
- DZ-to-DZ: outside VAT scope
- DZ-to-mainland: import (5% or reverse charge)
- Mainland-to-DZ: 0% with export evidence
- Consumption within a DZ: standard 5%
Services in designated zones
Services are always considered supplied in the UAE, even inside a DZ. Standard 5% VAT rules apply.
Compliance essentials
- Fence & customs-controlled evidence
- Bill of entry for each movement
- Separate DZ inventory register
- TRN and DZ-linked customs code
Get compliant today
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Frequently asked questions
Quick answers to common UAE vat questions.
This article is for general guidance only and reflects FTA rules as of June 2026. Always confirm your specific position with a qualified UAE tax advisor.