This Federal Tax Authority guide clarifies the Value Added Tax (VAT) treatment of Designated Zones in the UAE. It details the criteria a Free Zone must meet to be classified as a Designated Zone, as specified by a Cabinet Decision. The guide explains that for VAT purposes, these zones are treated as outside the UAE territory for certain supplies of goods, but not for services. It elaborates on the rules for supplies within, between, and from Designated Zones, including transfers, imports, and consumption of goods, primarily clarifying the application of the VAT Executive Regulations and associated record-keeping obligations.