The supply of educational services shall be zero rated on the conditions that: (1) the supply of educational services is provided in accordance with the curriculum recognized by the federal or local competent government entity regulating the education sector where the course is delivered, (2) the supplier of the educational services is an educational institution which is recognized by the federal or local competent government entity regulating the education sector where the course is delivered and (3) where the Supplier of educational services is a higher education institution, the institution is either
owned by the federal or local government or receives more than 50% of its annual funding directly from the federal or local government.
A supply of Goods or Services made by educational institutions identified in above paragraph shall be zero-rated where the supply is directly related to the provision of a zero-rated educational service and Printed and digital reading material provided by educational institutions identified in above paragraph & which are related to the curriculum of an education shall be zero-rated.
The exceptions to above paragraphs are:
(1) Goods and Services supplied by the educational institution that are made available to Persons who are not enrolled in the educational institution,
(2) Any Goods other than educational materials provided by the educational institution that are consumed or transformed by the students undertaking the educational service for the purposes of education,
(3) Uniforms or any other clothing which are required to be worn by the educational institution , irrespective of whether or not supplied by the educational institutions as part of the supply of educational services,
(4) Electronic devices in relation to educational services, irrespective of whether or not supplied by the educatio
nal institution as part of the supply of educational services,
(5) Food and beverages supplied at the educational institution, including supplies from vending machines or vouchers in respect of food and beverages,
(6) Field trips, unless these are directly related to the curriculum of an education service and are not predominantly recreational,
(7) Extracurricular activities provided by or through the
educational institution for a fee additional to the fee for the education service and (8) A supply of membership in a student organization. The above mentioned educational institutions are one which is in mentioned in the beginning paragraph. All the exceptions will be charged at 5% VAT.