How VAT in UAE will affect the education sector

How VAT in UAE will affect the education sector

Nov,2017

 

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.

 

UAE residents to pay VAT on food, water, power .Recognition should be given by the education ministry or competent government entity.       

 

However, following services shall be taxable at 5 per cent even though provided by recognized educational institutions: 

 

  1. Goods & services supplied to persons who are not enrolled with the institute.

 

  1. Any goods other than educational material provided which are not related to the curriculum of the educational institute.

 

  1. Supply of School Uniforms as required by the educational institute.

 

  1. Providing electronic devices irrespective of whether or not supplied as a part of educational services.

 

  1. Foods & Beverages supplied at the educational institutions

 

  1. Excursions or field trips unless directly related to the curriculum of the educational services.

 

  1. Extracurricular activities provided by or through the educational institutions.

 

  1. Supply of membership in a student organization.

 

Source credit: Khaleejtimes.com

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