Cabinet Decision Cabinet Decision No. 59 of 2017 Cabinet

CD 59/2017 — Designated Zones for VAT (with the FTA list)

Cabinet Decision No. 59 of 2017 on Designated Zones for the Purposes of Federal Decree-Law No. 8 of 2017 on Value Added Tax

In force — amended Issued 28 December 2017 In force from 1 January 2018

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Official Arabic title
قرار مجلس الوزراء رقم (59) لسنة 2017م في شأن المناطق المحددة لغايات المرسوم بقانون اتحادي رقم (8) لسنة 2017 في شأن ضريبة القيمة المضافة
Document type
Cabinet Decision
Number
59
Issued by
Cabinet
Administered by
Federal Tax Authority
Issued
28 December 2017
In force from
1 January 2018
Applies to
Businesses operating in, or supplying goods to and from, free zones in the UAE that are listed as Designated Zones for VAT.
Current position
In force with amendments. The FTA List of Designated Zones (September 2021) shows the Schedule as amended by Cabinet Decisions No. 35 of 2018, No. 43 of 2019, No. 34 of 2021, No. 63 of 2021 and No. 81 of 2021, with start and end dates for each zone. Only the Arabic decision is published; the English link is the FTA's bilingual list.
Topics
VAT ·
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Lists the free zones that are Designated Zones for VAT, provided they meet the conditions in the VAT Executive Regulation (Article 51: a fenced area with security and customs controls, internal procedures for goods, and an operator following FTA procedures). The original Schedule named zones in all seven emirates, and the Cabinet may add, delete or amend zones. The FTA's current list adds zones such as Al Ain and Al Butain airport free zones, International Humanitarian City, Dubai CommerCity and three Ras Al Khaimah industrial free zones, and shows Dubai Textile City, the Al Quoz free zone area and RAK Airport Free Zone as no longer designated after their end dates.

What it means in practice Professional insight

Who: businesses in UAE free zones and their customers and suppliers. What to check: whether the specific zone is on the current FTA list on the date of each supply, its start or end date, and the Executive Regulation rules for goods supplied within and between Designated Zones.

Key provisions

  • Art. 1 The zones in the Schedule annexed to the decision that meet the conditions in Cabinet Decision No. 52 of 2017 on the Executive Regulation of the VAT Law are Designated Zones for the purposes of implementing Federal Decree-Law No. 8 of 2017.
  • Schedule Original Schedule: Abu Dhabi — Free Trade Zone of Khalifa Port, Abu Dhabi Airport Free Zone, Khalifa Industrial Zone; Dubai — Jebel Ali Free Zone (North-South), Dubai Cars and Automotive Zone (DUCAMZ), Dubai Textile City, Free Zone Area in Al Quoz, DAFZA Industrial Park Free Zone - Al Qusais, Dubai Aviation City, Dubai Airport Free Zone; Sharjah — Hamriyah Free Zone, Sharjah Airport International Free Zone; Ajman — Ajman Free Zone; Umm Al Quwain — Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port, Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road; Ras Al Khaimah — RAK Port Free Zone, RAK Maritime City Free Zone, RAK Airport Free Zone; Fujairah — Fujairah Free Zone, FOIZ (Fujairah Oil Industry Zone).
  • Art. 2 The Cabinet may amend the Schedule by addition, deletion or amendment.
  • Schedule The FTA List of Designated Zones (September 2021), based on the decision and its amending Cabinet Decisions, adds Al Ain International Airport Free Zone and Al Butain International Airport Free Zone (from 18/06/2018), International Humanitarian City – Jebel Ali (from 18/06/2018), Dubai CommerCity (from 01/01/2021) and Al Hamra, Al Ghail and Al Hulaila Industrial Zones – Free Zone (from 04/07/2019), and ends RAK Airport Free Zone (to 04/07/2019), Dubai Textile City (to 04/04/2021) and Free Zone Area in Al Quoz (to 01/07/2021).
  • Arts. 3–5 The Minister of Finance issues the decisions required to implement it; any provision contrary to or conflicting with it is repealed; it applies from 1 January 2018.

What changed

  1. 28 December 2017 Issued
  2. 1 January 2018 In force
  3. 18 June 2018 Amended by Cabinet Decision No. 35 of 2018 (effective 18 June 2018)
  4. 4 July 2019 Amended by Cabinet Decision No. 43 of 2019 (effective 4 July 2019)
  5. 4 April 2021 Amended by Cabinet Decision No. 34 of 2021 (effective 4 April 2021)
  6. 1 July 2021 Amended by Cabinet Decision No. 63 of 2021 (effective 1 July 2021)
  7. 12 September 2021 Amended by Cabinet Decision No. 81 of 2021 (effective 12 September 2021)

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 23 August 2017 Federal Decree-Law FDL 8/2017 — VAT Law In force — amended
    1. 26 November 2017 Cabinet Decision CD 52/2017 — VAT Executive Regulation — Executive Regulation of this law In force — amended
      1. 24 July 2018 Cabinet Decision CD 41/2018 — Introducing the VAT refunds for tourists scheme — Made under Art. 68 In force
        1. 29 August 2018 FTA Decision FTA Decision 1/2018 — Retailer requirements for the VAT refunds for tourists scheme — Made under it In force
        2. 28 April 2019 FTA Decision FTA Decision 1/2019 — AED 7,000 cap on cash VAT refunds to tourists (repealed) — Made under it Repealed
        3. 26 May 2022 FTA Decision FTA Decision 4/2022 — One-year time limit for tourists to claim VAT refunds — Made under it In force
        4. 21 July 2022 FTA Decision FTA Decision 6/2022 — AED 35,000 cap on cash VAT refunds to tourists — Made under it In force
      2. 6 November 2018 FTA Decision FTA Decision 2/2018 — VAT refunds for tourists (consolidated 2026) — Made under Art. 68 In force — amended
      3. 17 December 2018 FTA Decision FTA Decision 4/2018 — No tax invoice for supplies through vending machines — Made under Art. 59(7) In force
      4. 26 May 2019 FTA Decision FTA Decision 7/2019 — Combined tax invoice/credit note and mailing addresses — Made under Arts. 59, 60 In force
      5. 22 February 2023 Ministerial Decision MD 26/2023 — When a supply counts as electronic commerce for VAT records — Made under Art. 72(5) In force
      6. 14 July 2026 Directive on Tax Transactions DTT 4/2026 — VAT on fees within life insurance contracts — Made under Art. 42 In force
      7. 1 September 2026 Cabinet Decision CD 149/2026 — VAT Regulation amendments — Amends Arts. 4, 29, 41, 52, 53, 54, 55, 57, 60 In force
      8. 9 September 2026 FTA Decision FTA Decision 17/2026 — Input tax on employee expenses — Made under Art. 53(1)(c) In force
    2. 28 December 2017 Cabinet Decision CD 55/2017 — Charities that may recover input tax (list as amended to Dec 2024) — Made under it In force — amended
    3. 28 December 2017 Cabinet Decision CD 56/2017 — Zero-rated medications and medical equipment — Made under it In force
    4. 28 December 2017 Cabinet Decision CD 59/2017 — Designated Zones for VAT (with the FTA list) — Made under it In force — amended
    5. 22 May 2018 Cabinet Decision CD 26/2018 — VAT refund on exhibition and conference services — Made under it In force
    6. 22 May 2018 Cabinet Decision CD 25/2018 — VAT on gold and diamonds between registrants (repealed) — Made under it Repealed
    7. 2 January 2020 Cabinet Decision CD 1/2020 — VAT refund for Expo 2020 Dubai official participants — Made under it In force
    8. 1 September 2020 Cabinet Decision CD 9/12 O of 2020 — Temporary zero rate on COVID-19 protective equipment — Made under it Spent
    9. 16 August 2022 Cabinet Decision CD 82/2022 — Refund of input tax on building and operating mosques — Made under it In force
      1. 29 October 2022 Ministerial Decision MD 162/2022 — Deadlines for mosque input tax refund requests — Made under it In force
    10. 25 August 2023 Cabinet Decision CD 91/2023 — Reverse charge on mobile phones, computers and tablets — Made under it In force
      1. 25 October 2023 Ministerial Decision MD 262/2023 — Which parts and pieces of electronic devices fall under the reverse charge — Made under it In force
    11. 1 November 2024 FTA Decision FTA Decision 8/2024 — Correcting VAT return errors that do not change the tax due — Made under it In force
    12. 16 December 2024 Cabinet Decision CD 127/2024 — Reverse charge on gold, precious metals and precious stones — Made under it In force
    13. 12 September 2025 Ministerial Decision MD 243/2025 — E-invoicing system — Made under e-invoicing provisions In force — amended (see E-Invoicing)
    14. 4 November 2025 Cabinet Decision CD 153/2025 — Reverse charge on metal scrap between registrants — Made under it In force
    15. 8 July 2026 Directive on Tax Transactions DTT 1/2026 — VAT on judicial expert services — Made under Art. 13 In force
    16. 8 July 2026 Directive on Tax Transactions DTT 2/2026 — VAT adjustments after leaving a Tax Group — Made under it In force
    17. 14 July 2026 Directive on Tax Transactions DTT 3/2026 — Converting digital-currency consideration to AED — Made under it In force
    18. 20 July 2026 Directive on Tax Transactions DTT 5/2026 — Valuing deemed supplies of services — Made under Art. 37 In force
    19. 22 July 2026 FTA Decision FTA Decision 13/2026 — Verifying suppliers before deducting input tax — Made under it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Related services: VAT Services · VAT Health Check

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.