So on one side is inside UAE and the other side is outside the UAE so here let us understand how the tax applicable.
See the designated zone I company is registered in the designated zone that is selling the products to another company which is located outside the UAE. in such case it will be out of scope the tax liability will not be there for the designators own company even though the sailors are making to an individual outside the UAE still the tax liability will not be it will be an out of scope sales.
At the same time if the registered company in the designated zone is selling to a mainland company or to an individual overall the tax impact will be 5 percentages. At the same time the designated zone company registered one selling to another company registered in the designated zone, there won't be the tax.
But if such a sale is made to any individual for consumption definitely five percentage of taxes have to tax has to be collected by the designator's own company and a way to the authority. The same time if such a sale is made to another company within the designated zone but if such sale is made for consumption then also five-person a tax has to be collected and paid to the authority
The same will be applicable in the case of another designator zone then a five percent tax will be there if it is used for consumption otherwise no tax or such a sales.
So far we were discussing the transactions of goods from the designated zone to the mainland or designator zone to outside UAE or between designated zones or within the designated zones as well.
But in the case of services or services from the designated zone company will be treated as at par with the state that means for any service done within the designated soul will be treated as similar the transaction taken that means 5% tax liability will be there for transactions for the services done in the designator.
So in short designated zones have got special provisions and some of the transactions will be taxable and some of the transactions will not be taxable in the case of services in the designated zone.