Applicability of VAT on amounts charged by hospitals for grating a sick leave certificate
A patient is required to furnish a sick leave certificate to it's employer (say Company A). In order to grant such sick leave certificates, the hospital charges a particular amount (say AED 50) over and above the fee towards healthcare services. Whether VAT should be applicable on such amount charged for providing sick leave certificates. Can a position be adopted that the same is part of Healthcare services rendered by hospitals and hence zero rated.
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Healthcare services are zero rated in case its for the recipient directly. Since supply of sick leave certificate is not a healthcare supply, it should be taxed @5%. In my opinion, it should not be zero rated.
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Thanks Chintan. Even I'm of the opinion that VAT @ 5% should be applicable.
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