Temporary Zero-rating of Certain Medical Equipment

On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.

In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.

The “medical equipment” to which the temporary zero-rating rules apply are personal protective equipment used for the protection from Covid-19, and which contain the features and meet the specifications determined and specified by the Ministerial Decision. Such medical equipment are limited to:

  • Medical face masks that are not included in the Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate (of approved standards 14683 and UAE.S ASTM F2100);
  • Half filtered face mask (UAE.S EN 149);
  • Non-Medical “community” face mask made from textile (UAE.S 1956);
  • Single-use gloves (UAE.S ISO 374-2); and
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).

CONDITIONS TO ZERO-RATING

Date of supply/import of above mentioned medical equipment shall be within the period beginning from 1 September 2020 to 31 December 2021.

With The Vat Registration In UAE Fill Proper VAT Form

Vat Registration In UAE

There are four major advantages to being Vat Registration In UAE that small businesses can willingly enjoy. At present, UAE based agencies only need to sign up for VAT if their revenue is £83,000 or more throughout year.

The Government taxes VAT (Value Added Tax) against goods and services within the UAE. The existing VAT rate is benchmark 20%, lower rate 5%, and zero rates 0%.

The standard charge of VAT will be valid to most goods and services retailed. The decreased rate will apply to businesses like children’s car seats and energy service providers. Zero rates will use to food and children’s clothes.

Also Read :- Liquidation Services In Dubai

Thus, if you are running a small business, how can you get advantage from being VAT registered?

  1. You get a VAT registration number

This might not look too thrilling, but your business can benefit from showing your VAT registration number on all your papers, website, and stationery. Vat Registration In UAE This can increase reliability to your business and provide you a more dependable and professional picture.

  1. You can claim VAT refunds

Once registration done, you can get back for VAT on all goods and services your business purchases. This should be balanced with what your business is charging and obtaining in VAT payments over the year. If you have spent lots of bucks in equipment, plant, apparatus or IT, you can easily recover a huge amount of VAT.

When it is best time to submit your VAT return, you can find that the HMRC sends you some money for a transform!

  1. You can improve your business image

If you are running a new small business, another advantage to being VAT registered is that many individuals are attentive of the VAT threshold. You then come out to your prospective customers that you are larger than you actually are by showing your VAT number.

Also Read : – Vat Return Filing In UAE

This can also assist you when it comes to managing other businesses. Some businesses choose it if you can increase a suitable VAT invoice.