Tax Public Clarification TAXP010 from the FTA explains what constitutes a Designated Zone for VAT purposes and how it differs from Free Zone and Designated Zone definitions under Corporate Tax and Excise Tax. A VAT Designated Zone is a specific fenced geographic area listed in Cabinet Decision No. 59 of 2017, the List of Designated Zones, that meets the conditions of Article 51(1) of the VAT Executive Regulation: security measures and customs controls, internal procedures for keeping, storing and processing Goods, and an operator complying with FTA procedures. Businesses should review the List of Designated Zones and confirm compliance with their free zone authority.