English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Goods and Services integral to qualifying Healthcare and provided directly to the patient during treatment are zero-rated, including medicines and consumables used in treatment, qualified laboratory Services, patient transport, patient accommodation and catering, mortuary Services and remote medical consultation. Food or accommodation for non-patients, parking, valet, telephone, internet, Electronic Services and TV rental are excluded.

Who should read this?

Medical institutions, internal pharmacies, laboratories, ambulance and medical billing teams.

Why does it matter?

Location inside a hospital is not enough. The test is whether the Supply is integral to treatment and provided to the patient in that context. Patient catering may qualify; companion catering and parking do not follow it.

Integral to treatmentDirectly to patientNon-patient comfort excluded

Current text

A. A Supply of Goods and Services associated with a Supply of Healthcare Services provided to a patient during the course of his treatment shall be subject to the zero rate. B. Goods and Services shall be associated with a Supply of Healthcare Services when they are an integral part of the Healthcare Services and shall be provided together with the qualifying medical Services and shall include, but not be limited to: 1. Drugs, medicines, bandages and other medical consumables administered or used during the course of performing qualifying medical Services, 2. Laboratory Services performed by qualified persons, 3. Transport Services for patients or those injured, 4. Accommodation and catering Services provided by a qualified medical provider to its patients, 5. Mortuary Services provided by qualified medical providers, 6. Medical consultations provided remotely by means of electronic communications such as telephone or video link. C. The following are examples of Goods and Services that shall not be regarded as associated with a Healthcare Service in accordance with Paragraph B of this Article: 1. The Supply of food and beverages to any Person who is not a patient, 2. Parking and valet Services, 3. Telephone, internet and Electronic Services, including TV rental Services, 4. Accommodation provided to any Person who is not a patient.

Classify treatment-related Supplies

  1. 1

    Identify patient and qualifying Healthcare Service.

  2. 2

    Test whether the item is integral to treatment.

  3. 3

    Confirm it is provided to the patient during treatment.

  4. 4

    Link medicine, lab, transport and accommodation to the treatment record.

  5. 5

    Separate companion, parking, telecom and entertainment Supplies.

  6. 6

    Do not hide different treatments under one invoice line.

Connected provisions

Direct legislative link

Regulations — Article (69)

Qualifying Healthcare

There must first be a qualifying medical Service.

Open connected Article
Thematic link

Regulations — Article (71)

Medicines and equipment

Use during treatment differs from an independent listed-product Supply.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (70)

Official guide

VAT General Guide — Version 1.15

Zero-rated Supplies

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Two hospital meals, two treatments

A meal supplied by the hospital to an inpatient as part of treatment may be associated Healthcare. A meal bought by the patient's companion does not become zero-rated because it is sold at the same hospital.

Questions to help you apply it

  • Who received it?
  • Is it integral to treatment?
  • Was it provided during treatment?
  • Must it be separated from comfort Services?