VAT Compliance for DMCC, DAFZA, and JAFZA Companies

UAE VAT for Free Zone Companies – Know Your Responsibilities

If you’re operating in one of Dubai’s top Free Zones—DMCC (Dubai Multi Commodities Centre), DAFZA (Dubai Airport Free Zone), or JAFZA (Jebel Ali Free Zone)—you enjoy many business advantages. However, when it comes to VAT in UAE, those benefits come with specific compliance requirements under Federal Tax Authority (FTA) rules.

AEY Accounting LLC provides comprehensive support for VAT registration, filing, and audit readiness for companies based in these prominent Free Zones, helping them remain compliant while optimizing for tax efficiency.

Are DMCC, DAFZA & JAFZA Companies Subject to VAT?

Yes. While some areas within these zones are considered “Designated Zones” and qualify for zero-rated VAT treatment in specific cases, this does not mean full exemption.

Key Scenarios

Transaction Type VAT Treatment
Sale within the same Free Zone May be zero-rated if both parties are VAT-registered
Sale to Mainland UAE Standard-rated (5%)—VAT must be charged
Import into the UAE Subject to reverse charge mechanism or import VAT
Export outside UAE Zero-rated (conditions apply)
Services rendered within UAE Generally standard-rated
Even if you're in DMCC, DAFZA, or JAFZA, VAT obligations still apply depending on where your customers are located and how your goods/services move.

What AEY Offers for VAT in DMCC, DAFZA, and JAFZA

VAT Registration & TRN for Free Zone Entities
  • Assess whether you’re required to register based on taxable turnover (AED 375,000 threshold)
  • Assist in registering on the FTA portal
  • Secure your Tax Registration Number (TRN) and validate business category
 VAT Return Filing & Reconciliation
  • Prepare Form 201 monthly or quarterly
  • Reconcile customs declarations with returns
  • Manage reverse charge mechanism entries for imports
  • Ensure proper invoice formatting (Arabic/English)
 FTA Audit Readiness & Appeals
  • Conduct internal VAT audits and flag inconsistencies
  • Review your filing and documentation against FTA audit standards
  • Handle FTA penalty reconsiderations and voluntary disclosures (Form 211)

DMCC, DAFZA, JAFZA VAT Compliance Checklist

Compliance Item Requirement
VAT registration (TRN) Mandatory if taxable turnover exceeds AED 375,000
FTA-compliant invoices Must include TRN, description, date, and VAT breakdown
Import/export record-keeping Required for 5 years, matching customs and VAT filings
Reverse charge mechanism reporting Required for international purchases of goods/services
Inter-Free Zone transactions Carefully documented to qualify for zero-rated treatment

AEY: Your Local VAT Expert for Dubai Free Zones

With offices serving clients in Dubai, we have deep experience in managing VAT obligations for businesses in:

  • DMCC: Trade, commodities, crypto, fintech
  • DAFZA: Aviation-linked logistics, e-commerce
  • JAFZA: Manufacturing, large-scale import/export firms

Each Free Zone has slightly different operational rules. AEY ensures your VAT processes are zone-specific and FTA-compliant.

Why Choose AEY for Free Zone VAT?

  • VAT compliance tailored to DMCC, DAFZA, and JAFZA regulations
  •  Integration with accounting platforms like Zoho, Tally Prime, QuickBooks
  • Full support from registration to audit defense
  •  Sector-specific advice—consulting, logistics, trading, tech

Pricing Snapshot – Free Zone VAT Services

Service Ideal For Starting Price (AED)
VAT Registration & TRN Setup New DMCC/DAFZA/JAFZA companies 750
Quarterly VAT Filing Active trading or service firms 1,500 / quarter
FTA Penalty Appeal Support Businesses with VAT notices 2,500+
VAT Advisory & Audit Prep Large-scale import/export firms Custom Quote
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Mail Address

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Popular Questions

Your Trusted Partner for Business Support & Solutions.

Yes, if your taxable supplies exceed AED 375,000 annually. AEY assists with VAT tax registration and filing.

Tally Prime, QuickBooks, and Zoho Books are popular. AEY supports all major systems.

While possible, high transaction volume and FTA compliance make professional help advisable.

Absolutely. Reconciliation ensures your payouts match reported sales and VAT.

We offer multi-currency accounting, including GCC and global VAT considerations.

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