Bookkeeping and revenue cycle
Billing, insurance claims, remittances and rejections reconciled.
Healthcare and Clinic Accounting, Audit and VAT in Dubai and the UAE
Clinics, hospitals, pharmacies and medical suppliers in the UAE need to manage insurance claim receivables and rejections, apply VAT correctly to zero-rated healthcare and standard-rated services, account for doctor fee arrangements and keep inventory of medicines under control. SGA World provides accounting, audit, VAT and corporate tax for healthcare businesses.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Healthcare at a glance
- Insurance
- Claims, rejections and ageing
- VAT
- Zero-rated care, 5% cosmetic
- Doctors
- Fee-sharing and payroll
- Pharmacy
- Medicine inventory and expiry
- Regulators
- DHA, DoH, MOHAP
Healthcare providers in the UAE earn most of their revenue through insurance companies, which pay slowly and reject a share of claims. They supply some services that are zero-rated for VAT and others, such as cosmetic treatments, that are taxed at 5%. They also work with doctors on fee-sharing terms and hold medicines with expiry dates.
SGA World provides accounting, audit, VAT and corporate tax for clinics, medical centres, hospitals, dental and dermatology practices, pharmacies and medical suppliers in Dubai and Abu Dhabi. We help you collect what you are owed, apply VAT correctly and see profit by doctor and department.
- Insurance receivables and rejections
- Claims
- Zero-rated and standard-rated services split
- VAT
- Fee-sharing arrangements accounted correctly
- Doctors
- Medicines and consumables controlled
- Stock
At a glance
Healthcare and Clinics Accounting and Audit: Key Points
- Insurance: claim receivables must be reviewed for rejections and expected credit losses under IFRS 9.
- VAT: healthcare services generally accepted as necessary for treatment, including preventive care, are zero-rated; cosmetic and elective services are generally 5%.
- Medicines: medicines and medical equipment listed by the Ministry of Health and Prevention can be zero-rated; other products are generally 5%.
- Doctors: fee-sharing doctors may be employees or independent; contracts decide the accounting and payroll treatment.
- Inventory: medicines and consumables need expiry tracking and write-downs.
- Corporate tax: 9% on profits above AED 375,000; small practices may use small business relief.
Our services
Which Services Do We Provide for Healthcare Providers?
Healthcare VAT
Splitting zero-rated and standard-rated services, input VAT apportionment.
Annual audit
Audits for licence, owners, lenders and investors.
Doctor and department reporting
Profit by doctor, specialty and branch, and fee-sharing calculations.
Payroll
Payroll for doctors, nurses and staff, with gratuity and WPS.
Corporate tax
Registration, small business relief and returns.
Key rules
Which UAE Rules Matter Most for Healthcare Businesses?
| Area | Rule | What it means for you |
|---|---|---|
| VAT on care | Healthcare necessary for treatment, including preventive care: zero-rated | Input VAT can be recovered. |
| VAT on cosmetic services | Elective and cosmetic services: generally 5% | Services must be split correctly in the system. |
| Medicines and equipment | Listed products: zero-rated | Other products: generally 5%. |
| Insurance receivables | IFRS 9 expected credit losses | Rejections and old claims provided for. |
| Licensing | DHA (Dubai), DoH (Abu Dhabi), MOHAP (other emirates) | Licence renewals may require financial information. |
| Corporate tax | Standard rules | 9% above AED 375,000. |
How we work
How Do We Work With Healthcare Clients?
Step01
Map revenue streams
Insurance, self-pay, packages, pharmacy and other services.
Step02
Set VAT rules
Classify each service and product as zero-rated or standard-rated.
Step03
Reconcile claims
Claims, remittances and rejections matched monthly.
Step04
Report
Profit by doctor, department and branch.
Step05
Audit and tax
Audited accounts, VAT and corporate tax returns.
Why SGA World
Why Choose SGA World for Healthcare and Clinics Accounting and Audit?
Healthcare revenue cycle know-how
We understand insurance claims, remittance advices and rejection codes.
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
Worked example
Example: A Dermatology Clinic With Medical and Cosmetic Services
A Dubai dermatology clinic treats skin conditions, mostly through insurance, and also offers cosmetic treatments to self-paying patients.
- VAT: treatments necessary for medical care are zero-rated; cosmetic procedures are taxed at 5%. The billing system flags each service code.
- Input VAT: because both supply types are taxable (zero-rated or standard), input VAT is generally recoverable, subject to normal rules.
- Insurance: 9% of claims are rejected; rejected and old claims are reviewed monthly and provided for.
- Doctors: two doctors are paid a share of collections; their contracts determine whether they are employees or independent.
The clinic now sees which doctors and services are truly profitable.
What to prepare
What Do We Need for Healthcare Accounting?
Billing data
Billing system reports by service, doctor and payer.
Insurance
Claims submitted, remittance advices and rejections.
Doctors
Doctor contracts and fee-sharing terms.
Inventory
Medicine and consumable stock, with expiry dates.
Licences
Facility and professional licences.
Tax
VAT returns and corporate tax registration.
Fees and timing
What Affects the Cost of Healthcare Accounting?
Fees depend on the number of branches and doctors, claim volumes, pharmacy operations, systems used and whether we provide monthly accounts, revenue cycle reconciliations, payroll and the annual audit. We agree fixed monthly fees.
Avoid problems
Common Healthcare Accounting Mistakes
Charging 5% VAT on medical treatments
Overcharging patients and insurers
Zero-rating cosmetic services
VAT assessments
No review of old insurance claims
Overstated receivables
Unclear doctor contracts
Payroll and tax errors
No expiry tracking for medicines
Unrecorded losses
Mixing pharmacy and clinic revenue
Wrong VAT and margins
Talk to us
Collect What You Are Owed and Get VAT Right
Tell us about your business and what you need. We will propose a clear scope and a fixed fee.
We handle
- Revenue cycle reconciliation
- Healthcare VAT
- Doctor and department reporting
- Payroll
- Annual audit
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 14 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
Healthcare and Clinics Accounting and Audit – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Is healthcare zero-rated for VAT in the UAE?
Healthcare services generally accepted in the medical profession as necessary for treatment, including preventive care, are zero-rated.
02.Is VAT charged on cosmetic treatments?
Cosmetic and elective services that are not necessary for treatment are generally taxed at 5%.
03.Are medicines zero-rated?
Medicines and medical equipment listed by the Ministry of Health and Prevention can be zero-rated; other products are generally standard-rated.
04.Can clinics recover input VAT?
Generally yes, because zero-rated supplies are taxable supplies, subject to the normal recovery rules.
05.How should insurance rejections be accounted for?
Rejected and doubtful claims should be reviewed and provided for under IFRS 9 expected credit loss rules.
06.Are fee-sharing doctors employees?
It depends on their contracts and how they work; the answer affects payroll, gratuity and accounting.
07.Do clinics pay corporate tax?
Yes, clinic companies are taxed at 9% above AED 375,000, unless they elect small business relief where eligible.
08.Do pharmacies need stock counts?
Yes, with expiry tracking, since expired medicines must be written off.
09.Which regulators license healthcare facilities?
The Dubai Health Authority in Dubai, the Department of Health in Abu Dhabi and the Ministry of Health and Prevention in other emirates.
10.Which services does SGA World provide to healthcare businesses?
Bookkeeping and revenue cycle reconciliation, healthcare VAT, payroll, doctor reporting, corporate tax and annual audits.
References:Federal Tax Authority · UAE Ministry of Finance · Ministry of Health and Prevention · Dubai Health Authority — reviewed 14 October 2026
