VAT designated zone advantages, warehousing, and cross-zone transfers. The specific regime is powerful, and specific paperwork is what unlocks it.
The Ministry's clarification narrows the definition of "qualifying activities" and reintroduces substance thresholds. Here's the practical practical explanation for holding structures.
Read the briefing →Certain goods movements within and between DFZEs are outside the scope of VAT. Not “zero-rated”, outside scope. Different rules, different documentation.
Import for re-export without customs duty. Requires cargo movement logs and specific accounting treatment.
DFZE status alone isn’t Corporate Tax exemption, but combined with QFZP it’s often the most tax efficient structure for trading businesses.
The regime works if you can prove it. That means Bill of Entry, delivery notes, storage logs, and Emirates ID checks on movements, set up correctly from day one.
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