Are preventive healthcare services zero-rated?

Article 41 – Zero-rating Healthcare Services 25 1. The phrase “Healthcare Services” means any Service supplied that is generally accepted in the medical profession as being necessary for the treatment of the Recipient of the supply, including preventive treatment. 2. A supply of healthcare services shall be zero rated on the condition that the supply shall: a. Be made by a healthcare body or institution, doctor, nurse, technician, dentist, or pharmacy, licensed by the Ministry of Health and Prevention or by any other competent authority concerned with healthcare. b. Relate to the wellbeing of a human being. 3. "Healthcare services" do not include any of the following: a. Any part of a supply that relates to staying in or attending an establishment the principal purpose of which is to provide holiday accommodation or entertainment such that any Healthcare Service is incidental to the provision of the accommodation or entertainment. b. Elective treatment for cosmetic reasons other than prescribed by a doctor or medical professional for treating or prevention of a medical condition. 4. A supply of Goods or an Import of Concerned Goods is zero-rated if it is a supply or an Import of:26 a. Any medical product as specified in a decision issued by the Cabinet. b. Any other Goods not covered by paragraph (a) of this Clause which are supplied in the course of supplying a Person with zero-rated Healthcare Services that are necessary for the supply of such Healthcare Services. Title Seven – Exempt Supplies

6. Zero-rated and exempt supplies 6.1. Chapter summary The purpose of this chapter is to give an overview of the supplies which will be subject to VAT at the zero rate and supplies which will be exempt from VAT. More detailed Guides will be provided separately on some of the areas below. 6.2. Zero-rated supplies Zero-rated supplies are taxable supplies of goods or services which are subject to VAT at 0%. The following broad categories of supplies are zero-rated:            A direct or indirect export of goods or services to outside the GCC Implementing States. International transport of passengers and goods which starts or ends in the UAE or passes through the UAE’s territory, including services related to such transport. Goods and services consumed or used during the international transportation of goods or passengers. Air, sea and land means of transport intended for the transportation of passengers or goods, and goods and services supplied for the purpose of the operation, repair, maintenance or conversion of these means of transport. Aircraft or vessels designated for rescue and assistance by air or sea. Certain investment precious metals. The first supply of a newly constructed or converted residential building within 3 years of the completion of the construction or conversion. The first supply of a building specifically designed to be used by charities. Crude oil and natural gas. Educational services and related goods and services for nurseries, preschool, and elementary education; and higher educational institutions owned or funded by Federal or local Government. Preventive and basic healthcare services and related goods and services. As mentioned above, although VAT charged on a zero-rated supply is nil, the supply is still treated as a taxable supply in all other respects – including the right of the person making the supply to recover the VAT on expenses incurred in making the zero-rated supply. 6.3. Exempt supplies The following supplies are exempt from VAT:   23 Financial services which are not conducted for an explicit fee, discount, commission, rebate or similar type of consideration, including life insurance and reinsurance of life insurance. Residential buildings, other than the residential buildings which are specifically zero-rated. VAT Guide | Taxable Person | VATG001

Most goods and services supplied in the UAE by a تخضع معظم السلع والخدمات التي يت ّم توريدها داخل الدولة .%5 لضريبة القيمة المضافة بالنسبة األساسية taxable person are subject to VAT at 5%. In accordance with Article 41 of Cabinet Decision ) لسنة52( ) من قرار مجلس الوزراء رقم41( ووفقا للمادة No. 52 of 2017 on the Executive Regulations of the في شأن الالئحة التنفيذية للمرسوم بقانون اتحادي2017 Federal Decree-Law No 8 of 2017 on Value Added في شأن ضريبة القيمة المضافة2017 ) لسنة8( رقم Tax (“Executive Regulations”), healthcare services تُطبق نسبة الصفر على خدمات،)"("الالئحة التنفيذية may be zero-rated if certain conditions are met. .الرعاية الصحية بناء على استيفاء التوريد شروطا محددة For the purposes of the Article, “healthcare ولغايات هذه المادة تُعرّ ف "خدمات الرعاية الصحية" على services” are defined as: :أنها “any Service supplied that is generally accepted "أي خدمة يتم توريدها وتكون متعارفا عليها بشكل عام in the medical profession as being necessary for ضمن مهنة الطب على أنها ضرورية لعالج متلقي the treatment of the Recipient of the supply ." بما في ذلك العالج الوقائي،التوريد including preventive treatment.” The above definition makes it clear that the يجب أن يكون متلقي التوريد هو،وكما هو موضح أعاله recipient of the supply must also be the patient ففي حال لم يكن المريض متلقي.ذاته المريض متلقي العالج that receives the treatment. Where the patient يكون من الواجب تطبيق،العالج هو ذاته متلقي التوريد and the recipient of the supply are not the same ضريبة القيمة المضافة على خدمات الرعاية الصحية بنسبة person, the services should therefore be subject to .%5 VAT at 5%. As a consequence, where a supply of services is في حال كانت الخدمات مقدمة من قبل مزود،ونتيجة لذلك made by a healthcare provider, the provider has to فيجب عليه النظر في من سيتلقى،خدمات رعاية صحية consider who the recipient of the supply is in order التوريد لتحديد ما إذا كان التوريد خاضعا لنسبة الصفر أم to be able to determine if the supply shall be zero- .ال rated. In determining the identity of the recipient of the يجب البدء بالنظر في،وألغراض تحديد هوية متلقي التوريد supply, the starting point should be to consider the تحديد الطرف الذي، السيما،الوضع التعاقدي بين األطراف contractual position between the parties and, ، وبالتالي.يحق له استالم الخدمات المورّ دة بموجب العقد specifically, who is contractually entitled to the وعلى الرغم من أن االتفاقيات التعاقدية بين األطراف ليست services supplied. Thus, although the contractual لكن ينبغي النظر إليها،دائما فاصلة في تحديد اتجاه التوريد 2