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

related articles:-

1. UAE VAT rate

2. Spare parts in UAE VAT

3. UAE duty-free goods

Our Services

Contact us

Follow us

Payment methods

Thevatconsultant.com © 2024. All Rights Reserved.

Call Now Button