Under Article 45(14) of the vat Act of the UAE and Article 41 of the Executive Rule, the provision of healthcare services shall be valued zero.
Health facilities provide fees for examinations, laboratory tests, fees for emergency rooms and medicines. Even other health facilities can be rated zero, which ensures that they will not charge VAT but can claim tax credit for their inputs.
The healthcare services concept makes clear that the supply recipient must be the patient who is also receiving the treatment. in these cases, the tax rate can be valued zero. if the patient and the supply recipient are not the same individual, the tax rate will be 5%. In this circumstance, knowing who is the recipient of the services is important for the healthcare service provider supplier. If the services recipient is not the customer, then the supply shall not be rated zero. The starting point for deciding the identity of the recipient of the supply would be to understand the contractual relationship between the parties and in specifically, who is contractually entitled to the services supplied.