A Brief Guide on VAT Exemption on Medical Supplies in UAE

Not all medical and health care services are free of VAT; some services charge 5% of VAT. Medical services and supplies will be zero-rated if the equipment or services are necessary for the treatment. Any other service or supply of unnecessary treatment may have 5% VAT; for example, booking of extra beds by the patients' relatives will include the VAT.

For ensuring better medical facilities, UAE has improved its VAT policies. According to these policies, some of the equipment and supplies will have a zero-rated VAT. On the other hand, cosmetic supplies and treatments will cost 5% VAT.

Keep scrolling this article to know the list of medical supplies that are exempted from the value-added tax in the UAE.

List of Items and Supplies Exempted from VAT

Some of the medical supplies are very important in medical operations, and their use is on a daily basis. The hospital staff and management get these supplies daily and are bound to use fresh ones every time. In such situations, the healthcare industry does not have to pay any tax on importing such supplies.

The following few points will help you know the list of supplies that have a tax exemption in the UAE.

1. Medical face Masks and half-filtered face masks

During the time of the pandemic, the government of the UAE decided to remove taxes on medical face masks. These supplies are one of the most important and crucial parts of any medical treatment both the doctors and the medical staff need to keep wearing these. If any hospital has paid any tax on these supplies, they can claim a tax refund, but to claim a refund, you must have registered for the VAT already. You can ask for best VAT consultancy services in Dubai for your registration and tax refunds if done on any of the exempted supplies.

2. Disinfectants

Chemical disinfectants and antiseptics are very important to use for disinfecting the human body before any operation. These services in the hospitals are an essential part of any patient's treatment, and there will be no tax implied on these supplies. One thing that is important to understand that these chemical disinfectants do not include any personal care products. Else there will be a 5% of tax on them.

3. Thermometers

Checking the temperature of the patient before proceeding with any medical treatment is a normal and important thing. The healthcare institution will not charge any tax on such services from the patient neither the institution has to pay any tax. If your medical institutions have paid any tax, then you can file a tax refund of these expenses.

4. Hand and footwear

Gloves and other footwear that medical staff and other members use for one time have zero-rated tax. These hand and footwear have a VAT exemption, and these policies on such supplies have reformed in the corona crisis. Such policies on medical supplies have ensured the safety of the visitors and the medical staff within the health care centers.

List of Medical Supplies That Do Not Have a VAT Exemption

Some of the medical supplies, equipment, and products will not have any tax exemption. It becomes necessary for the medical authorities to pay tax on their imports and the patients using these products. Not paying or registering for tax will cause penalties according to UAE law.

Below are some of the services and supplies on which paying a tax is a must.

1. Cosmetics and skincare products

Unlike disinfectants and other antiseptics, these products do not include as necessary products for human treatment. These cosmetic products and skincare products are the extra supplies that patients demand for their self-care, and due to these reasons, the tax on these supplies is 5%

2. Supplies used by patients relatives

Any extra services availed by the patients' relatives and visitors during the treatment do not have any tax exemption. These extra services could be the bedspreads or the addition of extra beds in the room. Any self-services availed by the visitors in the hospital will not have any tax exemption.

3. Indirect services provided to others

Sometimes a hospital provides services to other medical centers or asks for the services of the diagnostic centers. In such situations, the hospital has to pay VAT on the availed products and services. To calculate the amount you owe for acquired services, hire the best VAT consultancy and pay the right amount or claim the refunds on your extra payments.

Get your VAT registrations done on time!

No matter what institution you belong to, it is of great importance to register for VAT. You will be saved from many penalties and punishments. On the other hand, you will also keep track of your tax payments and refunds this way. If you haven't registered for VAT yet, then it is never too late to register. Ask for the expert's help to get your registrations done on time.