VAT RATE APPLICABILITY & EXEMPTIONS

5 % VAT ITEMSZERO-RATED VAT ITEMSExempted VAT ITEMS
Majority of goods & services Health Care and relevant goods & services Life Insurance
General Insurance (vehicle & Medical, etc.) Education and relevant goods & services Bare Land
Fee based financial services-credit card fee, etc New Residential House Margin based Financial Services
Ornamental gold, silver, diamond, platinum jewellery Purchase, Sale of Gold, Silver,(99% purity), Diamond, Platinum Local Passenger Transport
Imports (Importer in UAE to pay under Reverse Charge) Exports to outside GCC  
Sales or Lease of Commercial Property First sale of Residential Property within 3 years from their completion Sale of Residential Property
  Trial Run  
  Essential food stuff  
  B2B within GCC  
  International Transp. through Air, Ship, land