The tax experts said that the healthcare services like the cosmetic will now subject to a 5 percent VAT rate.
While addressing a seminar on VAT, Nimish Goel, partner at WTS Dhruva Consultants, said “The government has a keen interest and focus on promoting the healthcare industry in the UAE. Keeping this intent in mind, the government has kept basic and preventive healthcare supply at a zero rate of VAT. But there are a lot of activities that are still subject to VAT”.
As per the research reports, the healthcare expenditure is calculated to reach more than $100 billion in the GCC in which the UAE will play a very important role. It is calculated that by 2020, the UAE healthcare will reach Dh 71.56 billion.
Dr Ramadan AlBlooshi, CEO, Dubai Healthcare City Authority – Regulatory (DHCR), said that the VAT was introduced at the beginning of 2018 and after its introduction, the authority got to know about its implementation.
He said “We are keen to provide a platform to help stakeholders have a better understanding of VAT to facilitate compliance in the free zone“.
For the companies which are operating in the healthcare sectors, WTS Dhruva Consultants launched a comprehensive VAT guide at the seminar. The title of the guide is “VAT on Health Care in UAE – Impact and Insights” which gave the information about the issues related to healthcare insurance companies, service providers, and related products.
It is for the first time that someone has prepared a VAT guide for the healthcare sector in the UAE said Dinesh Kanabar, CEO and founder of WTS Dhruva addressing the VAT guide prepared by WTS Dhruva.
He said, “The guide addresses numerous issues related to the activities of healthcare service providers”.