The UAE Federal Tax Authority (FTA) has issued VAT guidance on designated zones and non-recoverable input tax for entertainment services. Designated Zones VAT Guide Historically, Free Zones have been excluded from the territorial scope of the UAE. For VAT purposes, however, this is not automatically the case. Only those Free Zones listed in a Cabinet Decision qualify for special VAT treatment and that special VAT treatment has certain limitations. These nominated Free Zones are known as Designated Zones for VAT purposes. Designated Zones are: Subject to strict control criteria; Required to have security procedures in place to control the movement...