UAE · VAT Concept
Designated Zone
A specific category of UAE free zone treated as outside the UAE for VAT purposes — supplies of goods within and between designated zones are not subject to UAE VAT.
In practice
Most UAE free zones are NOT designated zones for VAT purposes; designated status is restricted (JAFZA, Hamriyah, some others). Important for trading businesses: goods stored in a designated zone for re-export do not trigger UAE VAT. Confirm designated-zone status with the regulator before structuring around it.