VAT on Education

Under the VAT regulation, higher education institutes which are more than 50 per cent funded by the government, will not be charged VAT but the rest will be.

Khalid Al Bustani, director general of Federal Tax Authority, on Wednesday said the tourists in the UAE will also get refunds on the returns. He said the authority is working with the parties involved on the project and expected to be rolled out ahead of VAT implementation.
The education services shall be taxable at zero per cent only if it is supplied by a recognised educational institution and offer recognised curriculum.
The Recognition should be given by the education ministry or competent government entity.
In case of higher education institutions, the institution should be either owned by the Federal or local Government or receives more than 50 per cent of its annual funding directly from the Federal or local Government.

A supply of goods or services provided by educational institutions directly related to above shall be zero-rated.
We expect tuition fees, study material for the curriculum, medical fees, registration fees, admission fees, exam fees would be 0 per cent as well.

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