Education Services provided by a recognized educational institution under the curriculum, recognized by Ministry of Education or KHDA or Ministry of Higher Education and Scientific Research, are going to be taxed at zero percent in the UAE for VAT which will come into effect from 1st January 2018.
In case of higher education institutions, the institution should be either owned by the Federal or local Government or receives more than 50% of its annual funding directly from the Federal or local Government.
Other supply of goods/ services provide by educational institutions directly related to the educational services shall also be zero rated like Tuition fee, books, digital material, registration fee, admission fee, exam fee etc to be charged at zero rate.
Following supplies are to be charged at 5% even though provided by recognized educational institutions:
- Goods/ Services supplied to a person who is not enrolled with institute.
- Goods except study/ educational material which are not related to the curriculum of the institute.
- School Uniforms provided directly or indirectly by the institution
- Electronic devices/ gazettes provided by the institute to its students
- Foods & Beverages supplied at the institutions
- Excursions or field trips not related with curriculum of the institute
- Extracurricular activities provided by or through the institutions
- Supply of membership in a student organization.
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