My warehouse sits inside a free zone — does that automatically put it outside VAT?

Not every free zone gets the same treatment; the special VAT rule applies only to zones officially listed as Designated Zones under a Cabinet decision. Goods that stay under customs control, never leave the zone, aren't altered or consumed, and are held for re-export or movement between designated zones can be treated as entirely outside the scope of VAT. But that's not an automatic outcome for every fulfilment company just because of where it's physically located.

If a company uses any part of its goods or assets inside the zone for its own operational purposes — office furniture, equipment, fuel, running costs — that counts as consumption within the zone and gets taxed normally. And any movement of goods from a Designated Zone into the mainland UAE triggers import VAT for whoever receives them. Fulfilment and logistics companies need to confirm their zone is actually a formally Designated Zone before assuming any exemption applies. RASEEKH reviews your zone status and how goods actually move to set the correct treatment.