The UAE has actualized VAT on 1st January, 2018. Larger part of products and administrations provided will be saddled @ 5%, which is the most reduced VAT return uae rate within the world. Moreover, certain supplies are assessable @ 0%, few supplies are absolved and others are kept out of the scope of VAT.

This prepared reckoner will help you to check the VAT rates appropriate to each major division in UAE.

UAE VAT Rates

Supply Assessable @ 5% Assessable @ 0% Excluded Out of scope

Instruction

Private and open school instruction (barring higher instruction) and related merchandise and administrations given by instructive educate

Higher instruction given by teach possessed by the Government or 50% financed by the Government, and related merchandise and administrations

Instruction given by private higher instructive teach, and related products and administrations

Nursery instruction and pre-school instruction

School regalia

Stationery

Electronic gear (Tablets, tablets, etc.)

Leasing of school grounds for occasions

After school exercises for additional expenses

After school exercises provided by instructors and not for additional charge

School trips where the reason is instructive and inside the educational modules

School trips for amusement or not inside the educational modules

Healthcare

Preventive healthcare benefit counting immunizations

Healthcare administrations pointed at treatment of people counting restorative administrations and dental administrations

Other healthcare administrations that are not for treatment and are not preventive (e.g. mixed medication, restorative surgery, etc.)

Solutions and restorative gear as recorded in Cabinet Choice

Drugs and therapeutic hardware not recorded in Cabinet Choice

Other restorative supplies

Oil and gas

Unrefined oil and common gas

Other oil and gas items counting petrol at the pump

Transportation

Residential traveler transportation (counting flights inside UAE)

Universal transportation of travelers and products (counting intra-GCC)

Supply of a implies of transport (discuss, ocean and arrive) for the commercial transportation of merchandise and travelers (over 10 individuals)

Supply of merchandise and administrations relating to supply of these implies of transport and to the transportation of merchandise and travelers

Genuine domain

Deal and lease of commercial buildings

To begin with sale/rent of private building after completion of development or transformation

To begin with deal of charitable building

Sale/rent of private buildings ensuing to to begin with supply

Lodgings, motels and overhauled settlement

Uncovered arrive

Arrive (Not bare arrive)

UAE citizen building claim domestic

Budgetary administrations

Edge based items (items not having an unequivocal expense, commission, discount, markdown or comparative)

Items with an unequivocal charge, commission, discount, rebate or comparable

Intrigued on shapes of loaning (counting advances, credit cards, back renting)

Issue, designation or exchange of an value or obligation security

Venture gold, silver and platinum adornments

More than 99% immaculate and tradable in worldwide markets

Less than 99% immaculate

Gems

Protections and reinsurance

Protections and reinsurance (counting wellbeing, engine, property, etc.)

Life protections and life reinsurance

Nourishment and beverages

Nourishment and refreshments

Broadcast communications and electronic administrations

Wired and remote broadcast communications and electronic administrations

Government exercises

Majestic exercises which are not in competition with the private division embraced by assigned Government bodies

Exercises that are not majestic or are in competition with the private division VAT rate depends on the merchandise and administrations provided

Not for benefit organizations

Exercises of remote Governments, worldwide associations, political bodies and missions acting as such (in the event that not in commerce in UAE)

Charitable exercises attempted by social orders and affiliations of open welfare which are recorded by Cabinet Choice

Exercises of other not for benefit organizations (not recorded in Cabinet Choice) which are not trade exercises

Commerce exercises embraced by the over organizations VAT Registration rate depends on the products and administrations provided

Free Zones

Supplies of products between businesses in assigned zones

Supplies of administrations between businesses in assigned zones VAT rate depends on the benefit provided

Supplies of merchandise and administrations in non-designated zones VAT return uae rate depends on merchandise or administrations provided

Supplies of products and administrations from terrain to assigned zones or assigned zones to terrain VAT rate depends on the merchandise or administrations provided

Other

Trade of products and administrations to exterior the GCC VAT actualizing States

Exercises embraced by workers within the course of their work, counting pay rates

Supplies between individuals of a single charge gather

Any supplies of services or merchandise not said over (incorporates any things sold in UAE or benefit given)

Moment hand products (e.g. Utilized cars sold by retailers), collectibles and collectors’ things 5% of the benefit edge.

You can also Register for VAT Registration on our website:

https://thevatconsultant.com/.

The UAE has implemented VAT on January 1, 2018. Most goods and services provided will be taxed at a rate of 5%, which is the lowest value-added tax rate in the world. In addition, certain supplies are taxable @ 0%, a few supplies are exempt from tax, while others are not within the scope of VAT.

This ready-to-use calculation tool will help you check the VAT rates applicable to all major industries in the UAE.

Supply taxable @ 5% taxable @ 0% Exempt out of range

education

Education in private and public schools (except higher education) and related goods and services provided by educational institutions ✔

Higher education provided by government-owned institutions or 50% of government-funded higher education and related goods and services ✔

Education provided by private higher education institutions and related goods and services ✔

Kindergarten education and preschool education ✔

School uniform ✔

Stationery ✔

Electronic devices (tablets, laptops, etc.) ✔

Rent school event venue ✔

Extra charge for after-school activities ✔

After-school activities provided by the teacher at no extra charge ✔

School trips for educational purposes and within the scope of the course ✔

Recreation or school trips not within the scope of the course ✔

health care

Preventive health services, including vaccination ✔

Healthcare services designed to treat humans, including medical services and dental services ✔

Other non-therapeutic and non-preventive medical services (such as eclectic medicine, cosmetic surgery, etc.) ✔

Cabinet decision ✔ listed medicines and medical equipment

Medicines and medical equipment not listed in the Cabinet decision ✔

Other medical supplies ✔

Oil and gas

Crude oil and natural gas ✔

Other oil and gas products, including gasoline at pumps ✔

transport

Domestic passenger transport (including flights within the UAE) ✔

International transportation of passengers and cargo (including within the Gulf Cooperation Council) ✔

Provide transportation vehicles (air, sea and land) for commercial transportation of goods and passengers (over 10 people) ✔

Supply of goods and services related to the supply of these means of transport and the transportation of goods and passengers ✔

real estate

Sale and purchase of commercial buildings ✔

The first sale/rental of a residence after completion of construction or renovation ✔

First sale of charity building ✔

Sale/rental of residence after first supply ✔

Hotels, motels and serviced apartments ✔

Bare land ✔

Land (not bare land) ✔

UAE citizens build their own houses ✔

Financial Services

Margin products (products without clear fees, commissions, rebates, discounts or similar fees) ✔

Products with clear fees, commissions, discounts, discounts or similar prices ✔

Interest in the form of loans (including loans, credit cards, financing leasing) ✔

Issuance, distribution or transfer of equity or debt guarantee ✔

Invest in gold, silver and platinum jewelry

More than 99% pure and tradable on the global market ✔

Purity less than 99% ✔

Jewelry ✔

Insurance and reinsurance ✔

Insurance and reinsurance (including health, motor vehicles, property, etc.) ✔

Life insurance and life reinsurance ✔

food and drinks

Food and beverage ✔

Telecommunications and electronic services

Wired and wireless telecommunications and electronic services ✔

Government activity

Sovereign activities carried out by designated government agencies that do not compete with the private sector ✔

VAT rates for non-sovereign activities or competition with the private sector depend on the goods and services provided

Non-profit organizations

Activities of foreign governments, international organizations, diplomatic institutions and similar institutions (if not doing business in the UAE) ✔

Cabinet decision ✔ Charity activities carried out by listed public interest groups and societies ✔

Non-business activities of other non-profit organizations (not listed in the Cabinet decision) ✔

For the business activities carried out by the above organizations, the value-added tax rate depends on the goods and services provided

Free zone

Supply of goods between companies in designated areas ✔

The VAT rate of service supply between enterprises in the designated area depends on the service provided

The VAT rate for the supply of goods and services in non-designated areas depends on the goods or services supplied

The value-added tax rate of goods and services provided from the mainland to designated areas or designated areas depends on the goods or services provided

other

Export of goods and services outside the GCC VAT-implementing countries ✔

The activities that employees engage in during the employment process, including wages ✔

Supply between members of a single tax group ✔

Any service or supply of goods not mentioned above (including any goods sold or services provided in the UAE) ✔

5% of second-hand goods (such as used cars sold by retailers), antiques and collectors’ goods

You can download the VAT rate manual (pdf file) and start using it immediately! download

UAE VAT Rates- Handbook

You May Also Like

UAE VAT RATES – HANDBOOK

You May Also Like

VAT

Excise Tax

Corporate Tax

ESR

Accounting

More Services

Contact us

Follow us

Payment methods