Start Saving: Here Is A Comprehensive List Of What WILL Be Taxed From January 1

As d-day for the full implementation of Value Added Tax in the UAE draws near, a comprehensive list of what will be taxed has been revealed.

The Federal Tax Authority (FTA) previously announced VAT will be levied at 5% on goods and services, excluding some important exceptions, listed below.

The following will not be affected by VAT

Education, healthcare, oil and gas, transport and real estate will not be affected however some costs relating to these sectors WILL be taxed (details below).

Here’s what you need to know:

The following will be subject to 5% tax from January 1

Education:

• Education provided by private higher educational institutions, and related goods and services
• School uniforms
• Stationery
• Electronic equipment (tablets, laptops, etc.) 
• Renting of school grounds for events 
• After school activities for extra fees
• School trips for recreation or not within curriculum (

Healthcare:

• Other healthcare services that are not for treatment and are not preventive (e.g. elective, cosmetic, etc)
• Medicines and medical equipment not listed in Cabinet Decision 
• Other medical supplies 

Oil and gas:

• Other oil and gas products including petrol at the pump

Real estate:

• Sale and rent of commercial buildings (not residential buildings) 
• Hotels, motels and serviced accommodation 
• Land (not bare land)
• UAE citizen building own home 

Financial services:

• Products with an explicit fee, commission, rebate, discount or similar

Investment gold, silver and platinum, jewellery: 

• <99 per cent pure
• Jewellery 

Insurance and Reinsurance

• Insurance and reinsurance (including health, motor, property, etc) 

Food and beverages:

• Food and beverages

Telecommunications and electronic services:

• Wired and wireless telecommunications and electronic services 

Not for Profit organisations

• Business activities undertaken by the above organisations (VAT rate dependent on good/service ignoring provider)

Free zones:

• Supplies of services between businesses in designated zones (VAT rate dependent on service ignoring location)
• Supplies of goods and services in non-designated zones (VAT rate dependent on good/service ignoring location)

Other:

• Any supplies of services or goods not mentioned above (includes any items sold in the UAE or service provided)
• Second hand goods (e.g. used cars sold by retailers), antiques and collectors’ items (five per cent of the profit margin)

You can read the full Federal Decree-Law No. (13) n the Establishment of the Federal Tax Authority here

And see here for registration, implementation and returns guides