Depending on the circumstances, a provider of healthcare services may be contractually supplying these services to another provider of healthcare services.
For example, a doctor may have contracted with a hospital to provide certain healthcare services from the hospital's premises. Alternatively, a hospital may have contracted with a laboratory or another hospital for conducting tests or medical procedures for the hospital's patients.
The question is whether such business-to-business healthcare services are eligible for zero-rating.
A supply of healthcare services may only be zero-rated if the recipient of the supply is also the person who receives the treatment.
Most goods and services supplied in the UAE by a taxable person are subject to VAT at 5%.
In accordance with Article 41 of Cabinet Decision No. 52 of 2017 on the Executive Regulations of the Federal Decree-Law No 8 of 2017 on Value Added Tax ("Executive Regulations"), healthcare services may be zero-rated if certain conditions are met. For the ...