The UAE is home to many healthcare businesses and boasts of a well-planned medical system. However, it is imperative for the various healthcare operators to understand the intricacies of the VAT regime and how it impacts the healthcare sector. The Federal Tax Authority (FTA) generally considers the supplies of the healthcare services subject to the zero VAT rate. The healthcare services are subject to the zero VAT rate if it is aimed at treating the patients to cure a disease. Only preventive healthcare services are deemed zero-rated by the FTA and other services like cosmetics are subjected to the standard VAT rate. Also, the recipient of the healthcare services should be the patient to be eligible for the zero VAT rate.
However, even within the preventive healthcare services, there are certain cases where the standard 5% VAT rate is applicable. This could be a tricky situation for the healthcare operators and they would need to understand under what scenarios the supplies come under the standard rate, for which the guidance of efficient VAT consultancy services in the UAE is recommended.
Source: jcauaeaudit.com
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