Free zone vs Designated Zones in UAE

Posted on   14 September 2019

Free Zone, also known as Free Trade Zone (FTZs), is an area designed to promote the international business in UAE by providing 100% foreign enterprise ownership. Under UAE VAT law, VAT Free Zones are called 'Designated Zones'. Designated Zone refers to an area specified by a cabinet decision which, for the purpose of VAT will be treated as being outside the state subject to certain conditions being met.

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