Accounting for clinics and medical centres in the UAE
A clinic runs on appointments, not on spreadsheets. We take over the books, VAT across zero-rated and standard-rated services, Corporate Tax and doctors' payroll, and show the owner what insurers owe, what was rejected and how much tax is coming.
- 0% and 5% VATEvery service mapped
- Insurance claimsMatched to payments
- Doctors' payrollPaid through WPS
Which clinics this is for
Dental clinics
Treatment plans paid in stages, lab bills and consumables, dentists paid a share of what they bring in. Books by doctor and by treatment, with VAT charged only where it applies.
Medical centres and polyclinics
Several specialties, insured and self-pay patients, claims through insurers and TPAs. Payments matched to claims, so the owner sees what each payer really owes.
Aesthetic and dermatology clinics
Much of the work is cosmetic and carries 5% VAT, and courses are often paid upfront. VAT on a prepaid course is due when the money arrives, not when the sessions take place.
Physiotherapy and wellness clinics
A course of physiotherapy prescribed as treatment and a wellness session can fall under different VAT rates. Every service on the price list is mapped before the first return.
Every service, payer and doctor accounted for
From supplier invoices to tax returns, with insurance payments reconciled to claims.
- Monthly bookkeeping in Zoho Books or another system, with revenue by doctor and by service
- Every service on your price list mapped to its VAT rate: zero-rated healthcare or the standard 5%
- VAT registration and quarterly VAT returns, with input VAT recovered on equipment and supplies
- Insurer and TPA payments matched to claims; rejected and unpaid claims listed for your billing team to resubmit
- Prepaid packages and patient deposits tracked, with VAT accounted for on receipt where the service is standard-rated
- Doctors' pay calculated as a fixed salary plus a share of collections, and paid through WPS
- Corporate Tax registration and the annual return
- Supplier invoices, lab bills and receipts via a Telegram bot, so nothing is missing at VAT time
- An owner's report every month: revenue, insurance receivables, doctors' pay and tax ahead
Your clinic on one page
A sample monthly summary for a medical centre. The figures are illustrative.
| Payer | Billed | Paid | Rejected | Outstanding | Status |
|---|---|---|---|---|---|
| Insurer A | 412,000 | 351,000 | 18,600 | 42,400 | Within terms |
| Insurer B | 286,500 | 221,000 | 27,300 | 38,200 | Rejections to resubmit |
| TPA C | 194,000 | 96,000 | 8,100 | 89,900 | Payment 30 days late |
| Insurer D | 96,000 | 96,000 | 0 | 0 | Paid in full |
| Self-pay patients | 318,000 | 309,500 | – | 8,500 | Instalments on schedule |
What a clinic should know about UAE tax
Treatment at 0%, cosmetic work at 5%
Preventive and basic healthcare services are zero-rated. Services that are not needed for treatment, such as purely cosmetic procedures, carry the standard 5%. Many clinics offer both, so the rate is set service by service.
Zero-rated is not exempt
Zero-rated services still let a clinic recover input VAT on rent, equipment and supplies, with a valid tax invoice from the supplier; exempt supplies would not. Zero-rated revenue also counts towards the AED 375,000 registration threshold.
Prepaid packages and deposits
When a patient pays upfront for a course of standard-rated treatments, VAT is due when the money is received, not when the sessions take place.
Medicines and equipment
Certain medicines and medical equipment are zero-rated when they are on the government's approved lists. Whether an item is on a list is checked product by product.
Corporate Tax at 9%
Profit above AED 375,000 is taxed at 9%, and every clinic company registers and files a return, even with no profit. With revenue up to AED 3 million, Small Business Relief can be elected in the return for tax periods ending by 31 December 2026.
From the price list to clean books
The price depends on volume, not on the industry
Monthly bookkeeping from AED 700; a full finance function with VAT and payroll from AED 2,000 a month. We quote an exact price after reviewing your books.
Questions clinic owners ask
Are medical services zero-rated for VAT in the UAE?
Preventive and basic healthcare services are zero-rated. Services that are not needed for treatment, such as purely cosmetic procedures, are standard-rated at 5%. A clinic that offers both charges each service at its own rate, so the price list is mapped service by service.
Does a clinic need to register for VAT if most of its services are zero-rated?
Yes, once taxable supplies over the last 12 months exceed AED 375,000 or are expected to within the next 30 days, and zero-rated services count towards that figure. Being registered also lets the clinic recover input VAT on rent, equipment and supplies.
When is VAT due on a prepaid treatment package?
If the treatments are standard-rated, VAT is due when the payment is received, even if the sessions take place months later. Zero-rated treatments carry no VAT, but the prepayment is still recorded separately until the service is delivered.
How are insurance claims and rejections handled in the books?
We match each insurer or TPA remittance to the claims it covers: what was paid, paid short or rejected. Rejected and unpaid claims go to your billing team as a list for resubmission, and the owner sees what each payer really owes.
How is a doctor's percentage of collections paid through payroll?
Each month the fixed part and the share of collections are calculated from the books and paid together through WPS as part of our payroll service. Collections come from the books, so the doctor's share matches what the clinic actually received.
Does a clinic have to file a Corporate Tax return in the UAE?
Yes. Every company must register for Corporate Tax and file a return, even with no profit. Profit above AED 375,000 is taxed at 9%; with revenue up to AED 3 million, Small Business Relief can be elected in the return for tax periods ending by 31 December 2026.
How much does accounting cost for a clinic?
It depends on the number of transactions a month, not on the industry: from AED 700 for monthly bookkeeping, from AED 2,000 for a full finance function with VAT and payroll. We count the real volume before we start so the price holds from the first month.
Let's sort out your business finances
Tell us about your clinic: how many doctors, the share of insured patients and how the books are kept today. We reply within one business day.