VAT in GCC
Sector Impact > Medical
Health services includes consultation fees, diagnostics test, hospital room charges and medicines. Only certain health services will be zero rated, which means that they do not charge VAT but can claim their input tax credit. Details are awaited on what is included with certain health services.
Note: The cabinet has declared what medications and medical equipment shall be subjected to tax at zero rate. Click here to visit the MoF Website and read the official Cabinet Resolution Document.
The Government has revealed that the impact of VAT on the Medical sector will be as follows:
|Impact on Healthcare||VAT Rate|
|Preventive health care services including vaccinations||0%|
|Healthcare services aimed at treatment of humans, including medical services and dental services||0%|
|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 Decision||0%|
|Medicines and medical equipment not listed in Cabinet Decision||5%|
|Other medical supplies||5%|
Sector VAT News Update
Watch this space for updates
Sector impact analysis is provisional based on the GCC Draft and may change when the country issues the relevant VAT laws.