Saud bin Nasser al Shukaili, chairman of Tax Authority, announced Decision No 59/2021 on Sunday specifying the medicines and medical equipment that are zero-rated under Value Added Tax (VAT) which will be implemented from April 16.
Article 1 of the decision stipulates that medicines, herbal medicines, biological preparations, health and hygiene preparations, food for medicinal use, and medical equipment are subject to zero-rated VAT provided there is a permit issued by the Ministry of Health in accordance with the customs code.
Ninety-four food items are exempted from VAT including milk, meat, fish, fresh eggs, vegetables, fruits and bottled drinking water.
The decision was issued on March 31, 2021, and will be published in the Official Gazette and be effective from April 16, 2021.
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