Zero-rated VAT, done right
Qualifying UAE healthcare and medicines are zero-rated (0%) — not exempt — so you charge no VAT on those supplies yet still recover input VAT on costs. AIMuhaseb keeps that treatment clean and produces the VAT 201.
Hospitals, pharmacies & medical groups · UAE
Accounting software for UAE healthcare
Get zero-rated VAT right, recover input VAT, chase insurer claims, and value pharmacy stock — across hospitals, clinics, and medical groups. AIMuhaseb keeps clinical finances clean and compliant.
Where clinical finance gets complicated
Healthcare revenue rarely arrives in one clean payment. A single visit can split into a patient co-pay and an insurer claim that settles weeks later, while pharmacy sales and consumables move fast and eat into margin. On top of that sits a VAT quirk that trips up many providers: qualifying UAE healthcare is zero-rated, not exempt — you charge 0%, but you can still recover the input VAT on your costs. Treat it as exempt and you quietly hand money back to the FTA that you were entitled to keep.
AIMuhaseb is built for that reality. You post income with the correct zero-rated or standard treatment, track insurer and patient receivables separately, value pharmacy stock on FIFO, and consolidate multiple sites — all on IFRS double-entry books that stand up to an auditor or a licensing body.
What you get for your healthcare business
The workflows hospitals, pharmacies, and medical groups need — from claim to compliance.
Insurer & patient receivables
Track patient co-pays and insurer claims separately, age each debtor, and see what is outstanding from Daman, Thiqa, and private insurers versus walk-in patients.
Pharmacy & consumables stock
Value medicine and consumable inventory on a FIFO basis so cost of sales for a pharmacy or dispensing clinic reflects what you actually paid, batch after batch.
Multi-site & department view
Consolidate hospitals, clinics, and pharmacy branches into one Profit & Loss while still seeing each site or department’s performance.
Payroll, locums & suppliers
Manage supplier bills for equipment and consumables, and record salaries for doctors, nurses, and locum staff against the right cost centres.
IFRS reports for regulators
Real-time Trial Balance, P&L, and Balance Sheet on IFRS double-entry — ready for auditors, lenders, and licensing bodies such as DHA, DOH, or MOHAP.
From patient visit to filed VAT
A clear rhythm across a busy clinical operation.
01
Set up the practice
Add your TRN, fiscal year, and a UAE-ready chart of accounts with department, site, and cost-of-sales lines for a medical group.
02
Record income correctly
Post patient and insurer revenue with the right zero-rated or standard VAT treatment, and split co-pay from claim.
03
Track stock & costs
Book medicine and consumable purchases through FIFO inventory and record staff and supplier costs by department.
04
Reconcile & file
Match insurer settlements to the bank, review margin by site, and generate a VAT 201 that recovers your input VAT.
Why healthcare providers choose AIMuhaseb
Correct VAT, recovered input tax, and clean multi-site books — so your finance team supports care instead of chasing spreadsheets.
- Correct zero-rated (0%, recoverable) handling — not treated as exempt
- Input VAT recovery on equipment, consumables, and running costs
- Insurer and patient receivables aged and tracked separately
- FIFO valuation for pharmacy and clinical consumable stock
- Consolidated reporting across hospitals, clinics, and pharmacies
- An AI assistant that categorises costs and drafts journals for approval
Healthcare accounting questions
Is UAE healthcare VAT-exempt or zero-rated?
Qualifying healthcare services and related medicines and medical equipment in the UAE are zero-rated, meaning they are taxed at 0% rather than being exempt. The distinction matters: a zero-rated supply lets you recover the input VAT you pay on your costs, whereas an exempt supply does not. AIMuhaseb applies the correct treatment so you claim back input VAT you are entitled to. Where a specific service or product sits, confirm its status with your tax adviser or the FTA and apply it in the software.
Can it handle a group with hospitals, clinics, and pharmacies?
Yes. You keep one chart of accounts and can track each site and department, so a medical group consolidates into a single Profit & Loss and Balance Sheet while you still see how each hospital, clinic, or pharmacy branch is performing.
How does AIMuhaseb manage insurer claims and patient co-pays?
You record insurer receivables and patient co-payments separately and age each one, so you can see exactly what is outstanding from insurers such as Daman or Thiqa versus what is due from patients directly. That makes chasing claims and reconciling settlements far easier.
Does it track pharmacy and consumable inventory?
Yes. Medicines and clinical consumables are valued on a FIFO basis, so as you record purchases and dispensing, the cost flows into cost of sales and your gross margin reflects what you actually paid — useful for a pharmacy or a dispensing clinic.
Are the reports suitable for auditors and health regulators?
AIMuhaseb keeps proper IFRS double-entry books with a full audit trail and produces a Trial Balance, Profit & Loss, Balance Sheet, and Cash Flow statement in real time. You can export these for your auditor, for lenders, or when a licensing body such as DHA, DOH, or MOHAP requests financials.
I run a single clinic, not a hospital group — is this still relevant?
Yes. If you operate one clinic or a small practice, our narrower clinic page covers your workflow directly; this healthcare page is the broader parent for hospitals, pharmacies, and multi-site medical groups. Both run on the same platform, so you can start small and scale up without changing systems.
Enquire
Talk to us about your healthcare business
Tell us about your hospital, pharmacy, or clinic group — zero-rated VAT, insurer receivables, inventory, or the full back office. A UAE specialist will get back to you shortly.