VAT Rates announced by UAE

VAT Rates on Selected Industries

Education VAT rateVAT rate
Private and public school education (excluding higher education) and related goods and services provided by education institution0%
Higher education provided by institution owned by government or 50% funded by government, and related goods and services0%
Education provided by private higher educational institutions, and related goods and services5%
Nursery education and pre-school education0%
School uniforms5%
Stationery5%
Electronic equipment (tablets, laptops, etc.)5%
Renting of school grounds for events5%
After school activities for extra fee5%
After school activities supplied by teachers and not for extra charge0%
School trips where purpose is educational and within curriculum0%
School trips for recreation or not within curriculum5%
HealthcareVAT rate
Preventive healthcare services including vaccinations0%
Healthcare services aimed at treatment of humans including medical services and dental services0%
Other healthcare services that are not for treatment and are not preventive (e.g. elective, cosmetic, etc)5%
Medicines and medical equipment as listed in Cabinet Decision0%
Medicines and medical equipment not listed in Cabinet Decision5%
Other medical supplies5%
Oil and GasVAT rate
Crude oil and natural gas0%
Other oil and gas products including petrol at the pump5%
TransportationVAT rate
Domestic passenger transportation (including flights within UAE)Exempt
International transportation of passengers and goods (including intra-GCC)0%
Supply of a means of transport (air, sea and land) for the commercial transportation of goods and passengers (over 10 people)0%
Supply of goods and services relating to these means of transport and to the transportation of goods and passengers0%
Real estateVAT rate
Sale and rent of commercial buildings (not residential buildings)5%
First sale/rent of residential building after completion of construction or conversion0%
First sale of charitable building0%
Sale/rent of residential buildings subsequent to first supplyExempt
Hotels, motels and serviced accommodation5%
Bare landExempt
Land (not bare land)5%
UAE citizen building own home5% (recoverable)
Financial servicesVAT rate
Margin based products (products not having an explicit fee, commission, rebate, discount or similar)Exempt
Products with an explicit fee, commission, rebate, discount or similar5%
Interest on forms of lending (including loans, credit cards, finance leasing)Exempt
Issue, allotment or transfer of an equity or debt securityExempt
Investment gold, silver and platinum, jewelleryVAT rate
≥99% pure and tradable in global markets0%
<99% pure5%
Jewellery5%
Insurance and ReinsuranceVAT rate
Insurance and reinsurance (including health, motor, property, etc)5%
Life insurance and life reinsuranceExempt
Food & BeveragesVAT rate
Food and beverages5%
Telecommunications and electronic servicesVAT rate
Wired and wireless telecommunications and electronic services5%
Government activitiesVAT rate
Sovereign activities which are not in competition with the private sector undertaken by designated government bodiesConsidered outside VAT system
Activities that are not sovereign or are in competition with the private sectorVAT rate dependent on good/service ignoring provider
Not for Profit OrganizationsVAT rate
Activities of foreign governments, international organisations, diplomatic bodies and missions acting as such (if not in business in the UAE)Considered outside VAT system
Charitable activities undertaken by societies and associations of public welfare which are listed by Cabinet DecisionConsidered outside VAT system
Activities of other not for profit organizations (not listed in Cabinet Decision) which are not business activitiesConsidered outside VAT system
Business activities undertaken by the above organizationsVAT rate dependent on good/service ignoring provider
Free zonesVAT rate
Supplies of goods between businesses in designated zonesConsidered outside VAT system
Supplies of services between businesses in designated zonesVAT rate dependent on service ignoring location
Supplies of goods and services in non-designated zonesVAT rate dependent on good/service ignoring location
Supplies of goods and services from mainland to designated zones or designated zones to mainlandVAT rate dependent on good/service ignoring location
OtherVAT rate
Export of goods and services to outside the GCC implementing states0%
Activities undertaken by employees in the course of their employment, including salariesConsidered outside VAT system
Supplies between members of a single tax groupConsidered outside VAT system
Any supplies of services or goods not mentioned above (includes any items sold in the UAE or service provided)5%
Second hand goods (e.g. used cars sold by retailers), antiques and collectors’ items5% of the profit margin

Recent Posts