Cosmetic Services Subject To Five Percent VAT In UAE: Tax Experts

0

Dubai: Contrary to healthcare services that are not basic or preventive in nature, more cosmetic are subject to the standard five percent VAT rate.

The majority of healthcare services under the UAE VAT law have been classified as zero-rated. This effectively means that such services are subject to VAT at zero percent but with the eligibility to recover the VAT incurred on associated costs, said tax experts at a seminar. 

“The government has a keen interest and focus on promoting the healthcare industry in the UAE. Keeping this intent in mind, the government has kept basic and preventive healthcare supply at a zero rate of VAT. But there are a lot of activities that are still subject to VAT,” said Nimish Goel, partner at WTS Dhruva Consultants, while addressing a seminar on VAT.

Research reports suggest healthcare expenditure is projected to reach in excess of $100 billion in the GCC, with the UAE playing a prominent role. It is estimated that the UAE healthcare market is projected to reach Dh71.56 billion by 2020.

Dr Ramadan AlBlooshi, CEO, Dubai Healthcare City Authority – Regulatory (DHCR), said following the introduction of VAT at the beginning of last year, the authority received enquiries about its implementation.

“We are keen to provide a platform to help stakeholders have a better understanding of VAT to facilitate compliance in the free zone,” he said.

SOURCE: KHALEEJ TIMES

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More