The Value Added Tax (VAT) in the UAE is a 5% consumption tax imposed on most goods and services. However, some businesses and sectors benefit from VAT exemptions and zero-rated supplies under UAE tax regulations. Understanding these exemptions is crucial for compliance and financial planning.
This guide explores who is exempt from VAT in the UAE, covering key categories such as financial services, real estate, healthcare, education, and more.
Before diving into specific exemptions, it’s essential to understand the difference between VAT-exempt and zero-rated supplies:
Understanding these categories helps businesses optimize tax planning and compliance.
For further details, refer to the Federal Tax Authority VAT UAE.
Financial services that do not have explicit fees, commissions, or charges are VAT exempt in the UAE. These include:
However, financial advisory services and fee-based transactions are subject to VAT on financial services in UAE at 5%.
For details, visit UAE VAT rules on real estate.
Services such as taxis, buses, metro, and trams are VAT-exempt, as they fall under public transportation services.
Educational institutions must comply with FTA VAT guidelines.
Refer to FTA’s VAT Charities Guidelines.
Check the FTA’s Designated Zones List.
For further details, visit FTA VAT on exports UAE.
More details on VAT registration UAE.
For VAT returns and refunds, check FTA VAT return filing UAE.
Understanding UAE VAT exemptions 2025 is critical for businesses and individuals. Whether you are a financial institution, an educational provider, or a healthcare service, knowing your VAT obligations ensures compliance and effective financial planning.
For expert guidance on VAT regulations and business compliance, consult Aimed Advisors, a trusted partner for VAT advisory and financial strategy in the UAE.
