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New UAE VAT Public Clarification (VATP027): Goods and Services Supplied in a Designated Zone

On the FTA website under the Public Clarifications section a new Public Clarification is published by the FTA: VATP027 Goods Supplied in a Designated Zone, and Connected Shipping or Delivery Services.


Article 51(5) of the Executive Regulation2 was amended to treat the supply of goods in the designated zone as outside the scope of UAE VAT if the goods are consumed outside the designated zone, provided evidence is obtained and retained that:

− the goods were delivered to a place outside the UAE; or

− VAT was paid on the importation of those goods into the UAE.

For purposes of this Public Clarification, the goods mentioned in the previous paragraph are collectively referred to as “Qualifying Goods” where all the requirements of Article 51(5)(b) or (c) of the Executive Regulation are met.

The service of shipping / delivery of Qualifying Goods is also outside the scope of UAE VAT if supplied by the same supplier of the goods, provided the supplier is a non-resident who is not registered for VAT in the UAE.

See the pdf document below:

VATP027 - Goods and services supplied in a DZ
Download PDF • 466KB

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