Is VAT charged on food in the UAE?

Article (31) Supply of Foodstuffs, Medicines and Medical Equipment I: Food Items: All food items shall be subject to the standard Tax rate. Member States may apply the zero-rate on food items mentioned in a unified list of Goods approved by the Financial and Economic Cooperation Committee. II: Medicines and Medical Equipment: Medicines and medical equipment shall be subject to the zero-rate in accordance with unified provisions proposed by the Committee of Ministers of Health and approved by the Financial and Economic Cooperation Committee.

BASIC TAX INFORMATION BULLETIN Education Sector (Nurseries, Pre-schools, and Schools) 5. Are institutions in the Education Sector permitted to recover input VAT? Yes, educational institutions making only zero-rated or standard-rated supplies are eligible for a full recovery of input VAT, except for blocked items such as: - Certain entertainment services; and - Purchased, leased or rented motor vehicles that are available for personal use. However, where the educational institutions also render exempt transportation services, only a portion of the input VAT is recoverable. 6. Specific issues in the Education Sector a. An educational institute offers extra-curricular activities that are wholly related to the curriculum. Is this subject to VAT? The supply of extra-curricular activities can be zero-rated only where these are offered without any additional fee. However, where a fee is charged, this fee will be subject to VAT. b. Are supplies from vending machines subject to VAT? Yes, the supplies from vending machines are subject to VAT. The date of supply is the date on which the funds are collected from the vending machines. c. An educational institute offers a pick-up and drop-off facility for students. Are these services subject to VAT? No, transportation of students from home to the educational institute and vice versa is exempt from VAT. d. Are supplies of food and beverages in the canteen subject to VAT? What is the treatment for vouchers? Yes, the supply of food and beverages in the school’s canteen is subject to VAT. The supply of monetary vouchers for consideration up to the face value (or less) is disregarded for VAT purposes and the VAT liability crystallizes only upon redemption of the voucher. e. Is the supply of school uniforms subject to VAT? Yes, the supply of school uniforms is subject to VAT, irrespective of whether or not the uniforms are supplied as part of the supply of educational services.