School and Nursery Fees Zero Rated For VAT

The Federal Tax Authority in UAE has revealed the final list of sectors that are exempt from VAT. Education and healthcare are - largely - included, however parents will be paying more indirectly...
School and Nursery Fees Zero Rated For VAT
By Veathika
Do your children attend a UAE school? Take our survey and help other parents.
WhichSchoolAdvisor's annual school survey.
LET'S GO

The UAE is launching Value Added Tax (VAT) from January 1, 2018 and the Federal Tax Authority (FTA) has moved to end months of speculation on which industries and services will be zero rated for VAT.

Both education and healthcare goods and services will for the most part be zero-rated.

Private and public school education will be held at a 0% VAT rate. However, private higher education institutions will be subject to 5% VAT.

Read more: Schools will be hit by a more general rise in inflationary pressures

Pre-school or nursery education and any school trips within the curriculum or having an educational purpose are zero rated for VAT.

Parents, however, will have to pay more for school uniforms, stationery, electronic gadgets, after-school activities, recreational school trips and renting of school grounds.

According to Article 45, the "Supply of Goods and Services that is Subject to Zero Rate", sub-section 13 of the VAT Decree Law:

"The supply of educational services and related Goods and Services for nurseries, preschool, elementary education, and higher educational institutions owned or funded by Federal or local Government, as specified in the Executive Regulation of this Decree-Law.

As for healthcare, vaccinations are exempt from VAT. However, healthcare that is not preventive, and medicines and medical equipment not listed in the cabinet decision are subject to 5% VAT.

The UAE and Saudi Arabia will be the first to introduce VAT within the GCC, while other countries will roll it out in the next few years.

Comments
Latest UAE articles
School Performance

2020 ISC, ICSE Results Released in UAE

The CISCE exams were held in February and March but results were delayed due to the coron…

Choosing A School

Complete Dubai 2020 School Inspection Results

Our list includes the details of all those that have been inspected this year, schools wh…

School Performance

Pressure on IBO Grows with Second Petition

A new online petition calling for ‘justice’ for this year’s IB stud…

Courses & Curricula

CBSE Syllabus Slashed for "Covid-19 Respite"

CBSE students around the world will study a 30 per cent smaller syllabus as part of …

Society

The Write a Novel Review, Chapters 26-30

Week 6 of the Write a Novel Challenge by WhichSchoolAdvisor.com and SchoolsCompared.co…

School Performance

Distance Learning Evaluation: Process, Results!

Whilst all schools have been expected to improve their capacity in IT and innovation over…

School Performance

IB Results 'Scandal': Petition Launched

Following the release of the IB Diploma results to 170,000 students yesterday there has b…

Schools Closing

BEAM Closes Al Barsha Campus in Dubai

A week after announcing the temporary closure, for one year, of the American School of C…

0 Schools Selected
keyboard_arrow_down keyboard_arrow_up
Your selection Clear All