UAE VAT Rates- Handbook | Tally For VAT

UAE VAT Rates- Handbook

The UAE has implemented VAT on 1st January, 2018. Majority of goods and services supplied will be taxed @ 5%, which is the lowest VAT rate in the world. Additionally, certain supplies are taxable @ 0%, few supplies are exempt and others are kept out of the scope of VAT.

This ready reckoner will assist you to check the VAT rates applicable to each major sector in UAE.

Supply Taxable @ 5% Taxable @ 0% Exempt Out of scope
Private and public school education (excluding higher education) and related goods and services provided by educational institutions      
Higher education provided by institutions owned by the Government or 50% funded by the Government, and related goods and services      
Education provided by private higher educational institutions, and related goods and services      
Nursery education and pre-school education      
School uniforms      
Electronic equipment (Tablets, laptops, etc.)      
Renting of school grounds for events      
After school activities for extra fees      
After school activities supplied by teachers and not for extra charge      
School trips where the purpose is educational and within the curriculum      
School trips for recreation or not within the curriculum      
Preventive healthcare service including vaccinations      
Healthcare services aimed at treatment of humans including medical services and dental services      
Other healthcare services that are not for treatment and are not preventive (e.g. eclectic medicine, cosmetic surgery, etc.)      
Medicines and medical equipment as listed in Cabinet Decision      
Medicines and medical equipment not listed in Cabinet Decision      
Other medical supplies      
Oil and gas        
Crude oil and natural gas      
Other oil and gas products including petrol at the pump      
Domestic passenger transportation (including flights within UAE)      
International transportation of passengers and goods (including intra-GCC)      
Supply of a means of transport (air, sea and land) for the commercial transportation of goods and passengers (over 10 people)      
Supply of goods and services relating to supply of these means of transport and to the transportation of goods and passengers      
Real estate        
Sale and rent of commercial buildings      
First sale/rent of residential building after completion of construction or conversion      
First sale of charitable building      
Sale/rent of residential buildings subsequent to first supply      
Hotels, motels and serviced accommodation      
Bare land      
Land (Not bare land)      
UAE citizen building own home      
Financial services        
Margin based products (products not having an explicit fee, commission, rebate, discount or similar)      
Products with an explicit fee, commission, rebate, discount or similar      
Interest on forms of lending (including loans, credit cards, finance leasing)      
Issue, allotment or transfer of an equity or debt security      
Investment gold, silver and platinum jewellery        
More than 99% pure and tradable in global markets      
Less than 99% pure      
Insurance and reinsurance      
Insurance and reinsurance (including health, motor, property, etc.)      
Life insurance and life reinsurance      
Food and beverages        
Food and beverages      
Telecommunications and electronic services        
Wired and wireless telecommunications and electronic services      
Government activities        
Sovereign activities which are not in competition with the private sector undertaken by designated Government bodies      
Activities that are not sovereign or are in competition with the private sector VAT rate depends on the goods and services supplied  
Not for profit organizations        
Activities of foreign Governments, international organisations, diplomatic bodies and missions acting as such (if not in business in UAE)      
Charitable activities undertaken by societies and associations of public welfare which are listed by Cabinet Decision      
Activities of other not for profit organizations (not listed in Cabinet Decision) which are not business activities      
Business activities undertaken by the above organizations VAT rate depends on the goods and services supplied  
Free Zones        
Supplies of goods between businesses in designated zones      
Supplies of services between businesses in designated zones VAT rate depends on the service supplied  
Supplies of goods and services in non-designated zones VAT rate depends on goods or services supplied  
Supplies of goods and services from mainland to designated zones or designated zones to mainland VAT rate depends on the goods or services supplied  
Export of goods and services to outside the GCC VAT implementing States      
Activities undertaken by employees in the course of their employment, including salaries      
Supplies between members of a single tax group      
Any supplies of services or goods not mentioned above (includes any items sold in UAE or service provided)      
Second hand goods (e.g. Used cars sold by retailers), antiques and collectors’ items 5% of the profit margin    

You can download vat rate handbook (pdf file) and start using it right away! Download

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