In the United Arab Emirates, education is a vital industry. The introduction of value added tax in the UAE has also affected the education sector as additional value added tax has to be levied on certain goods and services provided by educational institutions. Let’s take a look at the clear calculation of the VAT rates applicable to the education sector:
0D
44Exemption
5D
44Kindergarten and pre-school education
School transport
School uniform
School education
Electronic equipment 44 44
Higher education Provided by government-owned institutions or institutions that receive 50% or more of their funding from the government
On-campus food and beverages
Printed materials and materials provided by eligible educational institutions Digital Reading Materials
School Recreational Travel
Extra-curricular Activities Activities
Therefore, the concept of ‘qualified educational institutions’ has been introduced as part of VAT. The value of educational services provided by qualified educational institutions is zero. These eligible educational institutions are: 4,444 4,444 kindergartens, kindergartens and schools.
Institutions of higher education owned or funded by the federal or local government.
These educational institutions should not charge VAT on the educational services they provide. You also have the option to recover the VAT paid on related costs when filing your tax return. In addition, books and digital reading materials provided by these institutions will also be zero-rated.
Example: Abdul School in the United Arab Emirates is subject to VAT. Considering that Abdul School is an authorized schoolTherefore, Abdul School does not charge her VAT on the tuition fees charged to the student. Books provided as part of the course are also not subject to VAT.
Educational services provided by non-accredited educational institutions are subject to 5% VAT.
Example: Azra Medical College, a private university, is subject to VAT. As this university is not an accredited educational institution, the course fees charged by Azra Medical College are subject to 5% VAT. In addition, books and reading materials provided by Azra University are subject to 5% value added tax.
Please note, however, that certain services provided by educational institutions, even if they are qualified educational institutions, are subject to his VAT of 5%, such as: B. School uniforms, electronic devices, food and beverages, recreational excursions, and extracurricular activities.
Example: Abdul School is subject to VAT. Given that Abdul School is a recognized educational establishment, there are no tuition fees. However, uniforms provided by Abdul School to students are subject to 5% VAT.
Additionally, providing school transportation is tax-free. This means that the educational institution will not charge her VAT for providing school transport. At the same time, she will not be able to recover her VAT paid when filing her tax return for the related expenses.
Example: Abdul School, which is VAT registered, provides transportation to and from the school for its students. School transport is exempt from VAT, so school transport provided by Abdul School is not subject to VAT. However, Abdul School cannot recover the VAT paid on related costs such as uniforms.
You can also register for VAT Registration on our website:
https://www.vat-registration-uae.com/