United Arab Emirates (UAE) Free Zones have been confirmed as not profiting from automatic VAT free status on the introduction of the new indirect tax from January 1, 2018. There are more than 40 Free Zones in the UAE. It generally locates at ports, airports and major cities and benefit from comfortable trading rules for foreign companies to inspire investment. The UAE VAT law covers this topic in Articles 50 to 52, but does not provide details of the VAT status for Free Zones. Free Trade Zones may still identify as VAT free Designated Zones, but it is not automatic.
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