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.