UAE Federal tax authority (“FTA”) revises the VAT rules regarding “Designated zones”

FTA issued Cabinet decision No. 88 of 2021 amending the executive regulations of the UAE VAT law effective from 30th Oct 2021.
In order to avoid double taxation on goods supplied from a designated zone (“DZ”), and to provide registration relief to non-resident suppliers who also ship or deliver these goods, Article 51 of the VAT executive regulations has been amended.
Further, FTA also issued a public clarification (VAT P027) to provide guidance on goods supplied in a Designated zone and connected shipping or delivery services.