For Free Zones, Federal Tax Authority announced the supplies that will subject to Value added Tax as of January 1, 2018.
Below table outlines that will be subject to the Value Added Tax:
Free zones |
VAT rate |
| Supplies of goods between businesses in designated zones | Considered outside VAT system |
| Supplies of services between businesses in designated zones | VAT rate dependent on service ignoring location |
| Supplies of goods and services in non-designated zones | VAT rate dependent on good/service ignoring location |
| Supplies of goods and services from mainland to designated zones or designated zones to mainland | VAT rate dependent on good/service ignoring location |
