With the start of the new academic year 2918 – 2019, some private schools have increased their premiums and the prices of many of their services under the pretext of VAT applied in the state …
With the start of the new academic year 2918 – 2019, some private schools have increased their premiums and the prices of many of their services under the pretext of value-added tax in the UAE since early January.
The wave of raising premiums and educational services prices at some private schools in the UAE has caused a wave of indignation among parents. The Federal Tax Authority of the UAE has previously determined the value of services subject to zero and 5%.
According to the Federal Government Authority Authority of the UAE, on the official website and its platforms through social networking sites, zero per cent of the value-added tax in the education sector applies to basic education services and related goods provided by an educational institution qualified as nurseries and institutions Preschoolers, primary education institutions, institutions for higher education in the hands of the federal or local government or financed with more than 50% thereof, printed and electronic reading material provided by the educational institution, For excursions related to a study program.
This means that an "eligible institution" does not charge VAT to taxable services with zero, and can reclaim VAT on its education-related costs through its tax return. Educational services provided by institutions other than "qualified educational institutions" These are subject to the basic ratio, ie up to 5%.
And services subject to 5% VAT, including uniforms, electronic devices, food and drink at school, recreational excursions, extracurricular activities and membership of a student organization, while school transport is completely exempt from tax.