VAT on Education Sector in UAE can be Standard-rated, Zero-rated or Exempt.
Zero-rated supplies
If both the curriculum and the educational institution are recognized by the competent federal and local government then the supply is considered as zero rated.
Further we can say that:
- Supply of good and services is zero-rated, which directly relates to the zero-rated educational service.
- Supply of printed or digital reading material which are related to the recognized curriculum.
Exempt supplies
Transportation of students from home to educational institution and back to home is exempt supply of service.
Standard-rated supplies
VAT is chargeable at standard rate on the following:
- Supplies made to persons who are not enrolled in the educational institution
- Uniforms, electronic devices, food and beverages
- Field trips which are unrelated to the curriculum
- Extracurricular activities provided for an additional charge
- Supply of membership in a student organization
- Goods/services provided by a business that is not an educational institution