VAT

VAT Law: Cabinet Decision on Designated Zones

The Federal Tax Authority (FTA) has published a copy of ‘Cabinet Decision No. (59) of 2017 on Designated Zones for the purposes of the Federal Decree-Law No. (8) of 2017 on Value Added Tax’, which gave much-awaited relief to major free zone players.

Furthermore, businesses which have not registered for VAT on the understanding that their activities would be outside the scope of UAE VAT, as a result of being wholly conducted within a Designated Zone, should instantly assess their options. Failure to charge VAT where required could lead to administrative penalties being levied by the FTA.

A recent amendment to the list of designated zones, in effect from 18 June 2018, has been published under Cabinet Decision No. (35) of 2018.

To view the summary, please click here [ 165 kb ] and to discuss how this impacts your business, please contact us.