VAT – Healthcare services:
Any service supplied that is generally accepted in the medical profession as being necessary for the treatment of the recipient of the supply including preventive treatment.
What are Zero- rating healthcare services?
A supply of healthcare services shall be zero rated on the condition that the supply shall:
- Be made by a healthcare body or institution, doctor, nurse, technician, dentist, or pharmacy, licensed by the Ministry of Health or by any other competent authority.
- Relate to the wellbeing of a human being.
Example: Supply of prosthetic leg by a hospital is exempt as it relates to the well being of human being.
|Exemptions : “Healthcare services” do not include any of the following:
a. Any part of a supply that relates to staying in or attending an establishment, the principal purpose of which is to provide holiday accommodation or entertainment such that any healthcare service is incidental to the provision of the accommodation or entertainment.
b. Elective treatment for cosmetic reasons other than prescribed by a doctor or a medical professional for treating or prevention of a medical condition.
Example: Supply of a cosmetic surgery may not qualify for exemption unless prescribed by a doctor or medical professional for treating or prevention of a medical condition. (Except in situations like road accidents and fire accidents)
What are Zero rated health care products?
A supply of Goods is zero-rated if it is a supply of:
- Any pharmaceutical products identified in a decision issued by the Cabinet.
- Any medical equipment identified in a decision issued by the Cabinet
- Any other Goods supplied in the course of supplying a Person with zero-rated healthcare services that are necessary for the supply of such healthcare services.