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UAE Cabinet Updates VAT Executive Regulation, Adds Zero Rate for Medical Goods

  • The UAE Cabinet amended the VAT Executive Regulation to apply a zero rate to medical products and to goods necessary for zero-rated healthcare services.
  • Persons present in the UAE for less than 30 days are treated as residents outside the UAE if their presence is unrelated to the supply.
  • Input tax recovery is allowed for employee goods and services required by labor law, contract, or employer policy.
  • Input tax apportionment rules were revised, effective from the first tax year beginning after Oct. 1, 2027.
  • A capital asset threshold was introduced under the amended regulation.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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