Import into Jebel Ali free zone for Export
My client is a DMCC registered entity importing goods into Jebel Ali free zone. Is vat applicable when we are importing into Jebel Ali but then export it out.
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Jabel Ali Free Zone is Designated Zone for UAE VAT Law purpose. Hence there is no VAT or not even Reverse Charge VAT applicable on Import. Export is anyway zero rated. Would suggest to keep proper documentation as evidence to prove that imported goods are not sold locally.
2 LikeEven the transaction is considered out of the scope as the goods are not considered as import of goods as per VAT law and any exports from Designated zone is considered out of the scope. But documentation is the key part for VAT Audit purpose
2 LikeThere will be no VAT implications on goods imported into Jebel Ali Free Zone as it is a designated zone under VAT rules. Exports are zero-rated. Reverse charge would be applicable only when the goods are moved out of the designated zone to the mainland. Which won't be applicable in the case mentioned above.
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