The VAT is implemented on the health care sector in UAE from January 2018. And it is said that it will not affect the health care service but it is also said that it will not increase the medical cost. But the premium of health insurance will be increased. And the experts have said the premium will increase by 5%. The UAE Ministry of Finance said that the some services will be exempted from the VAT implementation. The zero rated service like medical service will be out of VAT.
Though there is a confusion regarding that as several analysts are not sure about whether the medical insurance, dental treatment, optical treatment and third party administration fees will be affected. Though it is being said that VAT will be charged for supplies and that might include the medical supplies.
VAT or Value added Tax is implemented on the consumption of the goods or service. The VAT is implemented on the supply chain and not only that but also the value is added on the every stage. The end-users need to pay the tax on the cost of the product that is lesser than the cost of the material. The VAT is implemented in around 180 countries in the world and it helps to raise the revenue of the country. The VAT highly depends on the consumption of the goods and services but not on the tax payers’ income. In case of implementing VAT it is charged on the gross margin at every stage of manufacturing, distribution and sales.
If your business is eligible for monthly VAT return then only you can apply for VAT return filing. In order to file for VAT return you as a business owner need to take help from the Federal Tax department. The department is designed to look after the steps and accept the return and the process is done both online and offline. In order to file the VAT return you need to know that there are different categories and you need to see in which category your business belongs. While filing for return you need to provide all the details and the information needs to be relevant.
When you have a business you need to have registration number for the business. When you have registered the number you need one ID number for so that you can get the ID numbers that will help you to do the taxation. Here is the importance of tax registration number in UAE and they are stated below.