Taxation of Healthcare

Healthcare Services means 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.
Supply of healthcare services shall be zero rated on the conditions 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 and relate to the well-being of a human being. Supply of Goods is zero-rated if it is a supply of any pharmaceutical products identified in a decision issued by the Cabinet and any medical equipment identified in a decision issued by the Cabinet.

Healthcare services do not include any of the following:
1) 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.
2) Elective treatment for cosmetic reasons other than prescribed by a doctor or medical professional for treating or prevention of a medical condition.
3) Any other Goods not covered by paragraphs (1) and (2) above which are supplied in the course of supplying a Person with zero-rated healthcare services that are necessary for the supply of such healthcare services.
Healthcare services which are not covered in the two above stated paragraphs shall be charged at normal rate of VAT which is 5%.

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