United Arab Emirates Tax Agency Explains VAT Treatment for Designated Zones

The Emirati Federal Tax Authority Nov. 1 issued Public Clarification No. VATP027, explaining the amended VAT treatment for goods supplied in designated zones, to avoid double VAT taxation, which took effect Oct 30. The clarification includes that: 1) the supply of goods within a designated zone is generally considered outside the scope of United Arab Emirates (UAE) VAT; 2) for goods supplied within a designated zone intended for consumption, the place of supply for these goods is generally the UAE, unless a specified exclusion applies; 3) no VAT registration is required for supplies which are outside the scope of UAE ...