The UAE education sector is seeing a number of changes regarding VAT, as certain goods and services provided by educational institutions are subject to 5% VAT. Educational institutions will have questions about the impact of VAT on their sector. Let’s answer some frequently asked questions about VAT in education.
FAQ 1: How is education treated for VAT purposes in the UAE?
Answer: Educational services and related goods and services are subject to zero tax if provided by any of the following ‘eligible educational institutions’: will be evaluated.
Kindergartens, kindergartens and schools
Higher education institutions owned or funded by federal or local governments by this
which do not charge VAT on the educational services provided by these institutions; This means that you can recover the VAT you paid on the associated costs when filing your VAT return.
FAQ 2: Does an eligible educational institution need to be VAT registered?
Answer: Yes, if the eligible educational institution’s services exceed AED 375,000, the institution must be VAT registered. However, if your business does not provide services or goods that are subject to the 5% tax, you can apply for an exemption from the registration requirement. Once a registration exemption is granted, a company is exempted from filing regular tax returns, but at the same time cannot claim input tax on expenses.
FAQ 3: How are supplies of goods and services related to educational services treated for VAT purposes?
Answer: A “qualified educational institution” is also subject to zero rating if it provides other goods or services directly related to the provision of education.
Example: Books and digital reading materials provided by qualified educational institutions and directly related to the curriculum being taught are also eligible for zero rating.
FAQ 4: Are there any exceptions to zero rating for educational services provided by qualified educational institutions?
Answer: Yes. Some services related to the provision of educational services are subject to his VAT of 5%, even if provided by a qualified educational institution.
Products and services for people who do not attend educational institutions are registered.
Uniforms or other clothing required to be worn by students of eligible educational institutions, whether or not provided by the educational institution in the course of providing educational services.
Electronic equipment used in educational services.
Food and beverages delivered to these facilities.
Excursion. Unless it is directly related to the curriculum of the educational service or is not primarily for leisure purposes.
Extracurricular activities provided for a fee by or through such organizations in addition to the educational service fee.
Providing membership to student organizations.
FAQ 5: How is student accommodation treated for VAT in the UAE?
Answer: Accommodation provided to students is exempt from VAT. Therefore, although the institution will not charge her VAT on the provision of accommodation to the student, she will not be able to claim a refund of her VAT incurred on costs directly related to the provision of accommodation.
In the education sector, educational services provided by qualified educational institutions are primarily taken into account.
You can also register for VAT Registration on our website: