These goods and services are subject to VAT in UAE

VAT Treatment on Selected Industries

Education

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%

Healthcare

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 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

Crude oil and natural gas

0%

Other oil and gas products including petrol at the pump

5%

Transportation

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

Sale and rent of commercial buildings (not residential buildings)

5%

First sale/rent of residential building after completion of construction or conversion

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%

Financial services

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

Jewelry

5%

 Insurance and Reinsurance

Insurance and reinsurance (including health, motor, property, etc)

5%

Life insurance and life reinsurance

Exempt

Food & Beverages

Food and beverages

5%

Telecommunications and electronic services

Wired and wireless telecommunications and electronic services

5%

Other

Export of goods and services to outside the GCC implementing states

0%

Second hand goods (e.g. used cars sold by retailers), antiques and collectors’ items

5% of the profit margin