VAT impacts different economic sectors in different ways. Across the GCC states, the education sector has been given a special status under the respective VAT legislation by way of zero-rating or exemptions for specified supplies made by educational institutions. Therefore, it is imperative for educational institutions/societies with operations across GCC to ensure that their accounting systems are configured accordingly and appropriate disclosures as well as adjustments, if any, are being made in accordance with local VAT legislation. Since the zero-rating does not extend to professional or vocational education, institutions providing such courses to students should ensure that course fees advertised in the local market are inclusive of VAT. With the rise of remote e-learning on digital platforms due to the pandemic, institutions providing online courses should evaluate whether their services qualify as electronic services and ensure that appropriate VAT treatment is being assigned to course fee and other charges based on the physical location of the students receiving the services.

Our education VAT specialists will assist you to navigate through the complexities and challenges by providing the right advice with practical solutions to the challenges faced by this sector.