The FTA has made an announcement regarding a complete list of Goods and Services which will be influenced by the new UAE VAT regime. Supplies in transportation, real estate and financial services industries will be mostly exempt from VAT, while government activities will be outside of scope of VAT Tax.
| Education | VAT Rate |
| Private and public school education (excluding higher education) and related goods and services provided by educational institutions | 0% |
| Higher education provided by institutions owned by government or at least 50% funded by government, and related goods and services | 0% |
| Education provided by private higher educational institutions, and related goods and services | 5% |
| Nursery education and pre-school education | 0% |
| School uniforms | 5% |
| Stationery | 5% |
| Electronic equipment (laptops, tablets, etc.) | 5% |
| Renting of school grounds for events | 5% |
| After school activities for extra fee | 5% |
| After school activities supplied by teachers and not for extra charge | 0% |
| School trips where purpose is educational and within curriculum | 0% |
| School trips for recreation and not with curriculum | 5% |
| Healthcare | VAT Rate |
| Preventive healthcare services including vaccinations | 0% |
| Healthcare services aimed at treatment of humans including medical services and dental services | 0% |
| Other healthcare services that are not treatment and are not preventive (e.g. elective, cosmetic etc.) | 5% |
| Medicine and medical equipment as listed in Cabinet Decision | 0% |
| Medicine and medical equipment not listed in Cabinet Decision | 5% |
| Other medical supplies | 5% |
| Oil and gas | VAT Rate |
| Crude oil and natural gas | 0% |
| Crude oil and gas products including petrol at the pump | 5% |
| Transportation | VAT Rate |
| Domestic passenger transportation (including flights within UAE) | Exempt |
| International transportation of passengers and goods (including intra-GCC) | 0% |
| Supply of a means of transport (air, sea and land) for the commercial transportation of goods and passengers (over 10 people) | 0% |
| Supply of goods and services relating to these means of transport and to the transportation of goods and passengers | 0% |
| Real Estate | VAT Rate |
| Sale and rent of commercial buildings (not residential buildings) | 5% |
| First sale/rent of residential building after completion of construction or conversion | 0% |
| First sale of charitable building | 0% |
| Sale/rent of residential buildings subsequent to first supply | Exempt |
| Hotels, motels and serviced accommodation | 5% |
| Bare land | Exempt |
| Land (not bare land) | 5% |
| UAE citizen building own home | 5% (recoverable) |
| Financial Services | VAT Rate |
| Margin based products (products not having an explicit fee, commission, rebate, discount or similar) | Exempt |
| Product with and explicit fee, commission, rebate, discount or similar | 5% |
| Interest on forms of lending (including loans, credit cards, finance leasing) | Exempt |
| Issue, allotment or transfer of an equity or debt security | Exempt |
| Investment gold, silver and platinum, jewellry | VAT Rate |
| Over 99% pure and tradeable in global markets | 0% |
| Less than 99% pure | 5% |
| Jewellery | 5% |
| Insurance and reisurance | VAT Rate |
| Insurance and reisurance (including health, motor, property, etc.) | 5% |
| Life insurance and life reinsurance | Exempt |
| Food and beverages | VAT Rate |
| Food and beverages | 5% |
| Telecommunications and electronic services | VAT Rate |
| Wired and wireless telecommunications and electronic services | 5% |
| Government activities | VAT Rate |
| Sovereign activities which are not in competition with the private sector undertaken by designated government bodies | Out of scope |
| Activities which are not sovereign or are in competition with the private sector | VAT rate dependent on good/service ignoring provider |
| Not for profit organizations | VAT Rate |
| Activities of foreign governments, international organizations, diplomatic bodies and missions acting as such (if not in business in the UAE) | Out of scope |
| Charitable activities undertaken by societies and associations of public welfare which are listed by Cabinet decision | Out of scope |
| Activities of other not for profit organizations (not listed in the Cabinet Decision) which are not business activities | Out of scope |
| Business activities undertaken by the above organizations | VAT rate dependent on good/service ignoring provider |
| Free zones | VAT Rate |
| Supplies of goods between businesses in designated zones | Out of scope |
| Supplies of services between businesses in designated zones | VAT rate dependent on service ignoring location |
| Supplies of goods and services in non-designated zones | VAT rate dependent on good/service ignoring location |
| Supplies of goods and services from mainland to designated zones or designated zones to mainland | VAT rate dependent on good/service ignoring location |
| Other | VAT Rate |
| Export of goods and services to outside the GCC implementing states | 0% |
| Activities undertaken by employees in the course of their employment, including salaries | Out of scope |
| Any supplies of services or goods not mentioned above (includes any items sold in the UAE or services provided) | 5% |
| Second hand goods (e.g. used cars sold by retailers), antiques and collectors’ items | 5% of the profit margin |