VAT Rates on Selected Industries
Education VAT rate | VAT rate |
Private and public school education (excluding higher education) and related goods and services provided by education institution | 0% |
Higher education provided by institution owned by government or 50% funded by government, and related goods and services | 0% |
Education provided by private higher educational institutions, and related goods and services | 5% |
Nursery education and pre-school education | 0% |
School uniforms | 5% |
Stationery | 5% |
Electronic equipment (tablets, laptops, etc.) | 5% |
Renting of school grounds for events | 5% |
After school activities for extra fee | 5% |
After school activities supplied by teachers and not for extra charge | 0% |
School trips where purpose is educational and within curriculum | 0% |
School trips for recreation or not within curriculum | 5% |
Healthcare | VAT rate |
Preventive healthcare 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% |
Oil and Gas | VAT rate |
Crude oil and natural gas | 0% |
Other oil and gas products including petrol at the pump | 5% |
Transportation | VAT 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 passengers | 0% |
Real estate | VAT rate |
Sale and rent of commercial buildings (not residential buildings) | 5% |
First sale/rent of residential building after completion of construction or conversion | 0% |
First sale of charitable building | 0% |
Sale/rent of residential buildings subsequent to first supply | Exempt |
Hotels, motels and serviced accommodation | 5% |
Bare land | Exempt |
Land (not bare land) | 5% |
UAE citizen building own home | 5% (recoverable) |
Financial services | VAT 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 similar | 5% |
Interest on forms of lending (including loans, credit cards, finance leasing) | Exempt |
Issue, allotment or transfer of an equity or debt security | Exempt |
Investment gold, silver and platinum, jewellery | VAT rate |
≥99% pure and tradable in global markets | 0% |
<99% pure | 5% |
Jewellery | 5% |
Insurance and Reinsurance | VAT rate |
Insurance and reinsurance (including health, motor, property, etc) | 5% |
Life insurance and life reinsurance | Exempt |
Food & Beverages | VAT rate |
Food and beverages | 5% |
Telecommunications and electronic services | VAT rate |
Wired and wireless telecommunications and electronic services | 5% |
Government activities | VAT rate |
Sovereign activities which are not in competition with the private sector undertaken by designated government bodies | Considered outside VAT system |
Activities that are not sovereign or are in competition with the private sector | VAT rate dependent on good/service ignoring provider |
Not for Profit Organizations | VAT 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 Decision | Considered outside VAT system |
Activities of other not for profit organizations (not listed in Cabinet Decision) which are not business activities | Considered outside VAT system |
Business activities undertaken by the above organizations | VAT rate dependent on good/service ignoring provider |
Free zones | VAT rate |
Supplies of goods between businesses in designated zones | Considered outside VAT system |
Supplies of services between businesses in designated zones | VAT rate dependent on service ignoring location |
Supplies of goods and services in non-designated zones | VAT rate dependent on good/service ignoring location |
Supplies of goods and services from mainland to designated zones or designated zones to mainland | VAT rate dependent on good/service ignoring location |
Other | VAT rate |
Export of goods and services to outside the GCC implementing states | 0% |
Activities undertaken by employees in the course of their employment, including salaries | Considered outside VAT system |
Supplies between members of a single tax group | Considered 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’ items | 5% of the profit margin |
Recent Posts
- Federal Tax Authority Clarifies Import Procedures for Non-Registered Businesses
- Federal Tax Authority Provides Businesses with provisional Tax Registration Numbers
- Federal Tax Authority says registration for VAT continues and calls for commitment of businesses to avoid fines
- Ministry of Economy and Federal Tax Authority Launch an integrated program for Implementing VAT and detecting violations