Is VAT charged on medical equipment and medicines?

Article (2) Supplies Subject to Tax at Zero Rate This is an unofficial translation The supply of Medications and Medical Equipment registered with the Ministry of Health and Prevention, or imported with its permission or approval, shall be subject to tax at zero rate.

Article 41 – Zero-rating Healthcare Services 23 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. 23 Article amended as per Cabinet Decision No. 100 of 2024. Cabinet Decision No. 52 of 2017 and its amendments – Unofficial translation 31 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: a. Any pharmaceutical products as specified in a decision issued by the Cabinet. b. Any medical equipment as specified in a decision issued by the Cabinet. c. Any other Goods not covered by paragraphs (a) and (b) 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

This is not an official Translation: Application of Tax at the Zero Rate on Certain Medical Equipment Cabinet Decision No. (9/12 O) of 2020 Issue Date: 1st September 2020 The Cabinet has decided: 1. The personal protective equipment used for the protection from Covid-19, for which a decision issued from the Minister of Health and Prevention in coordination with the Ministry of Finance specifying and stating its features and technical specifications, shall be considered as Medical Equipment subject to VAT at the zero rate. 2. The supply of Medical Equipment mentioned in Clause (1) of this Decision shall be subject to VAT at the zero rate if the date of supply of the medical equipment, and the date of delivery to the recipient or the date on which they are placed at the recipient’s disposal, occurs within 6 months from the date of this Decision. 3. The import of Medical Equipment mentioned in Clause (1) of this Decision shall be subject to VAT at the zero rate if such medical equipment are imported into the State within 6 months from the date of this Decision. 4. Where the date of import of Medical Equipment, the date of their supply, the date of their delivery to the recipient, or the date on which they are placed at the recipient’s disposal, occurs after 6 months from the date of this Decision, the Medical Equipment shall be subject to VAT at 5% in the tax period in which the date of supply occurs. 5. For the purposes of this Decision, the date of supply shall be determined in accordance with Articles 25 and 26 of the Federal Decree Law No. 8 of 2017 on Value Added Tax. Cabinet Decision No. (9/12 O) of 2020- Issue Date: 1 September 2020 – Unofficial Translation