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Can you claim VAT on health and wellness benefitsin the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
0% or 5%
Corporate tax
Deductible

Usually blocked for gyms and wellness perks. Recoverable for medical checks the law requires.

Still being confirmed. Whether a visa medical test carries VAT depends on whether a government center or a private clinic does it, and this isn't confirmed yet. Claim only VAT shown on a tax invoice.

When you can claim the VATand when it's blocked

You can claim

  • Recoverable where you are legally or contractually required to provide it as normal business practice, such as mandatory medical checks.

You can't claim

  • Gym memberships, spa, and wellness perks for staff are personal benefits and blocked.

Worked examplesand why they land that way

  1. Depends

    Pre-employment medical test

    No VAT or recoverable.

    Medical tests you're legally required to arrange are a business cost. Some healthcare is zero-rated, so the invoice may show no VAT. If a private provider charges 5%, it's recoverable.

  2. Blocked

    Team gym membership

    A gym membership is a personal benefit for staff, so the VAT is blocked, even when the whole team gets one.

What to keepand what to watch

Documents you need

Tax invoice; benefits policy.

Corporate tax

Deductible. Deductible as staff costs.

GL account: Staff welfare / Medical

Common mistakes

Claiming VAT on gym memberships.

Questions peopleask about this

Is healthcare zero-rated in the UAE?

Preventive and basic healthcare is zero-rated. Other healthcare services are standard-rated at 5%.

Can a wellness program ever be recoverable?

Only when you're legally or contractually required to provide it as normal business practice. Gyms, spas, and perks for staff are blocked.

Is health and wellness spend deductible?

Yes, generally, as a staff cost for corporate tax.

Relatedexpenses

Rules thisanswer relies on

Legal basis: VAT Law Art. 45 (zero-rated healthcare); Exec. Reg. Art. 41; Exec. Reg. Art. 53(1)(c)

Sources

General treatment for VAT-registered UAE mainland businesses making fully taxable supplies. Free zones, partial exemption, government entities, and the facts of a specific purchase can change the answer. This guide isn't tax advice.