Quick Reminder about VAT rates in UAE.

  • 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%
  • School uniforms 5%
  • Stationery 5%
  • Electronic equipment (tablets, laptops, etc.) 5%
  • Renting of school grounds for events 5%
  • After school activities for extra fee 5%
  • After school activities supplied by teachers and not for extra charge 0%
  • School trips where purpose is educational and within curriculum 0%
  • School trips for recreation or not within curriculum 5%
  • 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 are 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%
  • First sale of charitable building0%
  • Sale/rent of residential buildings subsequent to first supply Exempt
  • Hotels, motels and serviced accommodation5%
  • Bare landExempt
  • Land (not bare land) 5%
  • UAE citizen building own home 5% (recoverable)
  • 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
  • Insurance and Re-insurance:

  • Insurance and reinsurance (including health, motor, property, etc) 5%
  • Life insurance and life reinsuranceExempt
  • Food and Beverages: 5% VAT rate Telecommunications and electronic services:

    Wired and wireless telecommunications and electronic services: 5% VAT rate

    Telecommunications and electronic services:

    Sovereign activities which are not in competition with the private sector undertaken by designated government bodies

    Considered outside VAT system


    Activities that are not sovereign or are in competition with the private sector

    VAT rate dependent on good/service ignoring provider

    Not for Profit Organizations:

    Activities of foreign governments, international organisations, diplomatic bodies and missions acting as such (if not in business in the UAE)

    Considered outside VAT system


    Charitable activities undertaken by societies and associations of public welfare which are listed by Cabinet Decision

    Considered outside VAT system


    Activities of other not for profit organizations (not listed in Cabinet Decision) which are not business activities

    Considered outside VAT system


    Business activities undertaken by the above organizations VAT rate dependent on good/service ignoring provider

    VAT rate dependent on good/service ignoring provider

    Free zones:

    Supplies of goods between businesses in designated zones

    Considered outside VAT system


    Supplies of services between businesses in designated zones

    VAT rate dependent on service ignoring location


    Supplies of goods and services in non-designated zones

    VAT rate dependent on good/service ignoring location


    Supplies of goods and services from mainland to designated zones or designated zones to mainland

    VAT rate dependent on good/service ignoring location

    Other:

    Export of goods and services to outside the GCC implementing states 0%


    Activities undertaken by employees in the course of their employment, including salaries

    Considered outside VAT system


    Supplies between members of a single tax group Considered outside VAT system

    Considered outside VAT system


    Any supplies of services or goods not mentioned above (includes any items sold in the UAE or service provided)5%

    Second hand goods (e.g. used cars sold by retailers), antiques and collectors' items 5% of the profit margin5% of the profit margin


    Select supplies in sectors such as transportation, real estate, financial services will be completely exempt from VAT, whereas certain government activities will be outside the scope of the tax system (and, therefore, not subject to tax). These include activities that are solely carried out by the government with no competition with the private sector, activities carried out by non-profit organisations.

    If you have any question or need help in submitting first VAT return in Albarsha, VAT return in Tecom, VAT return in Marina, VAT return in Sharjah, VAT Return in Abu Dhabi, please contact us and we will provide the best and competent service. We will do it for the lowest possible rate to make sure you do not pay high bills in preparation of VAT return.

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