Any designated area specified by a resolution of the Cabinet shall be treated as being outside the State and outside the applying states, subject to the following conditions:

1. The designated area is a specific fenced geographic area and has security measures and customs controls in place to monitor the entry and exit of individuals and the movement of goods to and from the area.

2. The designated area shall have internal procedures regarding the method of keeping, storing and processing of goods therein.

3. The operator of the designated area complies with the procedures set by the Authority.

If the designated area changes the manner of operating or no longer meets any of the conditions imposed on it that led to it being specified as a designated area under the Cabinet Resolution, it shall be treated as if being inside the State. The transfer of goods between designated areas shall not be subject to the tax if the following two conditions are met:

1. If the goods, or part thereof, are not released, and are not in any way used or altered during the transfer between the designated areas.

2. If the transfer is undertaken in accordance with the rules for customs suspension in accordance with the GCC Common Customs Law.

If goods are moved between designated areas, the Authority may require the owner of the goods to provide a financial guarantee for the payment of tax, which such person may become liable for if the conditions for movement of goods are not met.

If a supply of goods is made within a designated area to a person to be used by him or a third person, then the place of supply shall be the State unless the goods are to be incorporated into, attached to or otherwise form part of or are used in the production or sale of another goods located in the same designated area which itself is not consumed.

If a supply of goods is made within a designated area to a person to be used by him or by a third person, then the place of supply shall be the State, except for any of the following situations:

1. the goods are to be incorporated into, attached to or otherwise form part of or are used in the production or sale of another goods located in the same designated area which itself is not consumed.

2. The goods have been delivered to a place outside the State with the supplier keeping a commercial or official record proving it and a customs record proving that the goods were evacuated from the designated area.

3. The goods have been evacuated from the designated area to a place inside the State with the supplier keeping an official record proving that the value added tax has been applied to this import.

The place of supply of water or any form of energy shall be considered to be inside the State if the place of supply is in a designated area.

In exception to the provisions of clause (6) of this Article, the place of supply shall be considered outside the state if the suppled freight or delivery services were directly related to goods whose place of supply is outside the State in accordance with paragraphs (b) and (c) of clause (5) of this Article, and the following conditions have been collectively met:

1. The freight or delivery services are supplied by the same supplier of goods.

2. The supplier of goods shall be a non-resident and not registered for tax.

3. The goods shall be sold through an electronic sales platform; and by 'electronic sales platform' it is means any type of electronic platform for online sales, including electronic websites and applications, and that gathers people from sellers and buyers, and which enables the selling and buying of goods with or without freight or delivery services.

4. The person owning the electronic sales platform shall not be the supplier of goods.

The place of supply of water or any type of energy shall be considered inside the State if the place of supply was located in the designate area.

The goods present inside the designated area, for which its owner has not settled its tax, shall be treated as if it was imported into the State if:

1. The goods were consumed by the owner, unless the goods are incorporated into, attached to or otherwise form part of or are used in the production of other goods located in a designated area which are not consumed.

2. The goods are unaccounted for.

Any person established, registered or which has a place of residence in a designated area shall be deemed to have a place of residence in the State for the purposes of the Decree-Law.