The medical and healthcare profession is one of the highest regarded professions all over the globe. You save lives, you give hopes, you build the infrastructure and you can handle the greatest of ailments with ease. But, there is something that’s giving you a headache too and that’s taxation matters.
UAE is home to numerous healthcare businesses. It is crucial for healthcare providers to understand the intricacies of the VAT regime and how it impacts their sector.
The Federal Tax Authority in the United Arab Emirates considers the supplies of the specified healthcare services subject to the zero VAT rate. In other words, it means that, in cases where certain criteria are fulfilled, VAT will not be chargeable on the provision of services; but in other cases, the default 5% standard rate of VAT will apply.
The conditions which entitle for zero percent VAT on healthcare are quite strict. The healthcare services are entitled to zero VAT rate if they are aimed at treating patients to cure a disease. It is important to note that only preventive healthcare services qualify for zero VAT. All the other services such as cosmetics are entitled to the standard VAT rate. Furthermore, the recipient of the healthcare services should be the patient to be eligible for the zero VAT rate.
Having said that, even in the preventive healthcare services, there are certain cases that do not qualify for zero VAT rate. It could be daunting and confusing for the healthcare providers in the UAE to correctly assess each case and scenarios that qualify for the zero VAT rate or standard VAT rate.
The VAT on health services in the UAE is complex therefore it is of paramount importance to understand the VAT processes and systems to ensure the correct VAT treatment is applied. Failing to comply with the VAT laws or having incorrect processes could lead to assessments and penalties from the Federal Tax Authority and can lead to costly implications.
Therefore, it is highly recommended that healthcare operators should seek efficient VAT consultancy services in the UAE.
Contact Meru Accounting for VAT Consultancy in the UAE
The introduction of VAT in the UAE has brought a transformative impact on the economy of the nation. The VAT regime has definitely made the economy more sound. Moreover, VAT compliances have made business operations across healthcare sectors more streamlined and transparent.
However, many healthcare businesses in the UAE still ignore the basic tenets of VAT compliance and get fined by the Federal Tax Authority. But you can escape this with the help of a professional firm like us.
Meru Accounting is one of the leading VAT consultants in the UAE. We offer premium VAT services to healthcare industries across the Emirates.
Meru Accounting has a team of highly qualified and experienced VAT consultants who are well-versed in all the regulations regarding the VAT and the VAT law in the UAE. We can take care of your VAT registration UAE, VAT filing, VAT Return UAE, and assist the businesses in fulfilling various VAT Compliances. Furthermore, we can save you from being fined by the Federal Tax Authority.
We also assist healthcare providers to adapt to an efficient accounting system and services to maintain transparency and accuracy in VAT filings.
Meru Accounting VAT Services for Healthcare Sector
It is crucial to analyze and classify each and every business transaction in order to ensure that they are correctly treated for VAT purposes. Meru Accounting helps you with the following VAT related services:
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VAT Registration:We undertake the entire process of VAT registration in UAE online right from getting the Tax Registration Number (TRN) to filing the VAT registration form and submitting the required documents, we take care of everything.
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VAT Calculations and Return Filing : We assist you in correctly calculating your VAT liability, preparing VAT return in accordance with the VAT laws on 201 form, and submitting it in the FTA portal.
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VAT Implementation and Compliance : Being recently implemented, VAT is still a complex and challenging area for many businesses. We help you comply with each law and file the tax for medical expenses and cosmetic services to avoid penalties.
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Vat Reclaim / Refund : In case you qualify for VAT reclaim or refund, we help you to reclaim the VAT amount paid earlier.
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To know more about our healthcare VAT services, get in touch with Meru Accounting.
Our office address
Global Production Team (India) 902, Shivalik Tower, Nr. Panchvati Cross Roads, Ahmedabad, Gujarat 380009,India