VAT Implications for the Healthcare Sector in the United Arab Emirates

On January 1, 2018, the United Arab Emirates (UAE) introduced a zero rate of VAT (0%) for specified healthcare services. This means that, where certain criteria are met, VAT will not be chargeable on the provision of such services; otherwise, the default 5% standard rate of VAT will apply. The entitlement to apply the 0% rate for healthcare is subject to strict conditions. As such, it is crucial that robust VAT processes and systems are in place to ensure the correct VAT treatment is applied. Failing to get this right could lead to assessments and penalties from the Federal Tax Authority (FTA), as well as costly commercial implications.

Deloitte has therefore designed a summary document for the VAT implications for the Healthcare Sectors in the UAE.