It was confirmed in the recently released executive regulations that health care services are to be zero-rated.
The document, posted to the Federal Tax Authority’s website, stated that: “The phrase ‘health care 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.”
Experts say that the inclusion of preventive treatments is important, as it was previously not clear that things like diabetes tests and malaria shots would be zero-rated.
A supply of health care services shall be zero-rated, according to the executive regulations, on the condition that the supply is “made by a health care body or institution, doctor, nurse, technician, dentist, or pharmacy, licensed by the Ministry of Health or by any other competent authority,” or relating to the “well-being of a human being”.
Zero-rated health care goods will be announced in a separate cabinet decision, according to the document.
The regulations go on to state that health care services do not include, among other things, elective treatments for cosmetic reasons, other than those prescribed by a medical professional for treating or preventing a medical condition.