Amendment in Tax Rules for supply of Goods in Designated Zones

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UAE – November 3, 2021:

The Federal Tax Authority (FTA) has announced that amendment on tax treatment for supply of goods in designated zones and connected shipping or delivery services to avoid VAT double taxation has come into effect as of October 30,2021.

In a statement, the FTA has confirmed the importance of Cabinet Decision No. (88) of 2021 to amend Article 51 of Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on value-added tax (VAT), and said latest move aims to avoid VAT double taxation on supplied goods in the designated zones and facilitate procedures to non-resident suppliers operating in the designated zones, as these goods will be treated —under certain conditions — outside the scope of tax, hence, no tax registration is required from the supplier.

View the newly issued VAT Public Clarification explaining the New Amendment in the Tax Treatment for the Supply of Goods in Designated zones and Connected Shipping or Delivery Services.