Public Clarification and Amendment to VAT Executive Regulations - Designated Zones
02 November 2021
The Federal Tax Authority has published a public clarification to explain the impact of an amendment to Article 51 of the UAE VAT Regulations. The amendment allows certain supplies of goods and associated shipping services made in designated zones to be treated as outside the scope of UAE VAT if the goods are consumed outside the designated zone. This is a discrete relief designed to avoid double taxation on goods supplied from a designated zone and provide registration relief to non-resident suppliers who also ship or deliver these goods. There are a number of conditions to be met in order for the outside the scope treatment to apply. The amendment is effective from 30 October 2021.
Amended Executive Regulations link
We are working on a detailed analysis that the public clarification and amendments of the VAT Executive Regulations will have on the businesses of Designated Zones. Watch out for this space for more updates.