What will be the impact of VAT on Free Zone Companies? Definition of Designated Zone ‘DZ’~ A fee zoe speciied by 2 decision of the Cabinet cull be teated 2b being outside the State (cluding Implementing State) subject to following conditions (But not all free zones will be considered as ‘Designated Zone’ unless specified in the Cabinet decision) os ees Nace of Supa Se VAT Applica DEteDz wares DzeDz vane ‘Sopplyof Sensice DZ to Maiand war Gs ‘Sopply of Service Maielnd to DZ vaT a6 DZ to Outeide UAE. ‘Dut af Scopes ‘Outside UAE YAT@ 3% RCM) DIDI" pt Cut Scope DE wDE see Out Soapee| Supply of Goods DZ to Manland*on 3 VATQS% RAD Supply of Goods Main wo DZ VAT ‘DZ to Qvhide UAE Out of Seopet Oude UAE to DZ-piee) Out of Seopedt | Nore IF the Goods is used for oem consumpson then VAT @ 5% (RCM) willbe ‘Slee 6 ie eet nap for acne woman thas BAT 25 (RCM) Sa pe applicable “Noe the Soppiic ts sang econ an VAT Swi cared, | # Out Stop mens Ode the pew of UAE VAT Low