Tax Compliance

Simplified:
A Guide for the Education Sector
26 September 2023 | 10:00 AM - 11:00 AM

By,
ITC Accounting & Tax Consultancy
ABOUT US
ITC Accounting and Tax Consultancy (ITC) has established itself as one of the most reliable and recognized tax consultancies in the UAE. From its establishment, Mr. Ahmed Sharafeldin,
our Founding Partner, recognized the lack of clear directives among the companies with prevalent desire to adhere to regulatory frameworks. In response, the inception of ITC was driven
by the commitment to facilitate businesses in achieving and upholding compliance, rectifying inadvertent discrepancies, and effectively navigating disputes with the Federal Tax Authority
(FTA). Guided by this overarching purpose, ITC has steadfastly delivered unparalleled excellence in Tax Consultation and Solutions, consistently raising the benchmark for client service.

ITC’s uniqueness lies in its expert team and service, which has enabled it to rapidly expand its client base in the Middle East Region. The innovative approach of the ITC Tax Experts has
enabled it to remain competitive in today's highly challenging business environment. When it comes to quality and expertise, ITC makes no compromises, this facilitates a long-term
relationship with its clientele. Through the best team in service, providing value combined with speed, most of our customers are earned from retention business. Therefore, ITC stands out
from the competition, all while ensuring the highest level of client satisfaction.

2019 2020 2021 2022 2023

ESTABLISHMENT GROWING TEAM EXPANISON ABU DHABI MIDDLE EAST
In 2023, ITC
ITC has fast
Founded to support With Growing undertook strategic
growing team of ITC expanded its
businesses in Portfolio, of clients, expansion by
highly qualified & operations in Oman
maintaining tax ITC established Abu broadening its
dedicated with introduction of
compliance while Dhabi Office, operational scope
professionals tax. Intending to
also effectively enabling extended from the initial
working towards help businesses
addressing their tax- reachability for the presence in the
highly challenging across GCC with
related disputes businesses and elite UAE and Oman to
business the right solutions.
with the FTA. client base.. encompass Qatar
environment.
and Egypt.
OUR TEAM
Nikita is a highly skilled tax professional with nearly a decade of experience in various tax-related
fields, including VAT compliance. Her well-rounded understanding of the industry has been honed
through years of hands-on experience, and she has become an asset to her team due to her expertise in
Tax Advisory and Pre-Audits. She has a track record of handling important cases and clients with
professionalism, which has earned her the trust of her clients and colleagues alike.

Nikita is known for her attention to detail and her strong work ethic. She approaches every task with
dedication and precision, ensuring that each task is completed accurately and on time. Her dedication
to her work has earned her the respect of her colleagues across all departments, and she is often looked
upon as a leader within her team. Nikita is also committed to mentoring and teaching her colleagues,
which has helped to raise the overall level of knowledge and skills within her organization.

In her role as a VAT compliance expert, Nikita is committed to ensuring that her clients meet all of
their compliance requirements. She is well-versed in VAT laws and regulations and stays up-to-date
with any changes to these laws. Her expertise in VAT compliance, coupled with her attention to detail
Nikita Bhandary
and strong work ethic, make her a highly respected and sought-after tax professional in the industry.
Tax Manager
 01 About Us
Introduction, Company Timeline, Leadership
Table of Contents

02 Why education sector is ‘ZERO rated’?

An Understanding

03 Conditions to meet ZERO rated

Conditions to understand

04 Services that are an Exception to Zero Rated Supplies

Brief Explanation

05 Place of supply of formatting Service In Special Case

Brief Explanations

06 Use of bus transport of students

Understanding

07 Supply of school building for a charitable purpose

What are the conditions and Requirements

08 Retention of documents for Claim of input tax

List of Documentation

09 VAT Tax Rates on the Education Sector in the UAE

Overview

10 Contact Us
Why265+
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As per the Article 45 of the Federal Decree Law No.18 of 2022 specifies that The supply of educational services and
related goods & services for nurseries, preschool, school education, and higher educational institutions are owned
or funded by federal or local government, also as specified in the Executive Regulation of Federal Decree Law No.8.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Conditions to meet ZERO rated
1. As per Article 40 of the Executive Regulation of Federal Decree Law No. 8, if the following
conditions are met:

Recognized Curriculum by the competent authority regulating the

education sector in the UAE.

Recognized Educational institution by the competent authority regulating

the education sector in the UAE.

The higher education institution is either owned by the federal or local

government OR It receives more than 50% of its annual funding directly
from the federal or local government.

Where the supply is directly related to the provision of a zero-rated

educational service.

Printed and digital reading material related to the recognized curriculum of

the education shall be zero-rated which is provided by educational
institutions.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Services that are an Exception to Zero Rated Supplies:
As an exception to zero rated supplies, the following supplies shall not be zero rated if:

Services Supplied by educational institutions to the Persons who are not enrolled in the educational institution.

Any goods other than educational materials provided to students by educational institutions.

Supply of Uniforms and Clothing required to be worn in the educational institutions.

Usage of Electronic devices related to educational services.

Food and beverages supplied at the educational institution

Field trips, unless these are directly related to the curriculum of an education service and are not predominantly recreational.

Extracurricular activities provided by or through the educational institution for a fee additional to the fee for the education service.

A supply of membership in a student organization.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Place of supply of Service In Special
Case
1. Usually, the place of supply of service shall be
place of residence of the supplier.

2. But as per Ar.30 an exception to Ar.29 states the

place of supply of services for special cases i.e., for
any educational services provided would be
where the services are performed.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Examples:
1. If the educational services provided via
online classes within UAE.

Service Online to
Institution
Students

Within UAE
• If Recognized 0%
• If not 5 %

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
2. If the educational services provided to
students outside UAE via online classes.

Service Online to
Institution
Students

Outside UAE

0% Export of
Service

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
3. Training or services obtained from an expert
related to the education services

Import of Service
Expert Education
Faculty Institute Based
(outside UAE) Providing in UAE (on site)
service to online
student

Import of Service
5% (Box 3, Box 10 in
VAT form)

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
4. If any education faculty member is sent
outside to impart the educational service.

Out of Scope Service

Education
Expert Faculty Institute Outside
UAE (on site)

Providing
service
• Visits outside UAE
• Thus, out of scope Since service performed outside UAE.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Use Of Bus Transport Of Students

The supply of local passenger transport Services in a qualifying

means of transport by land, water or air from a place in the State to
another place in the State shall be exempt.

The phrase “qualifying means of transport” means: A motor vehicle,

including a taxi, bus, railway train, tram, mono-rail or similar means
of transport, designed or adapted for transport of passengers.
Transportation service provided by the education institution to its
student is considered transport of passenger service, as per article
45 of Executive Regulation of Federal Decree Law No.8 of 2017.
Thus, such a service will be considered exempt supply of service.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Significance of Invoicing as per Article.59 of Executive
Regulations Federal Decree Law No.8 of 2017.
1. A Tax Invoice The words “Tax Invoice” clearly displayed on the invoice.
shall contain all the
following The name, address, and Tax Registration Number of the Registrant making the
particulars: supply.

The name, address, and Tax Registration Number of the Recipient where he is a
Registrant.
A sequential Tax Invoice number or a unique number which enables
identification of the Tax Invoice and the order of the Tax Invoice in any sequence
of invoices.
The date of issuing the Tax Invoice.

The date of supply if different from the date the Tax Invoice was issued.

A description of the Goods or Services supplied.

For each Good or Service, the unit price, the quantity or volume supplied, the
rate of Tax and the amount payable expressed in AED.

The amount of any discount offered.

The gross amount payable expressed in AED.

The Tax amount payable expressed in AED together with the rate of exchange
applied where the currency is converted from a currency other than the UAE
dirham.
ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Significance of Invoicing as per Article.59 of Executive
Regulations Federal Decree Law No.8 of 2017.
2. The Taxable
Person may issue a The Taxable Person must be capable of securely storing a copy of the electronic
Tax Invoice by Tax Invoice in compliance with the record keeping requirements.
electronic means
provided that:
The authenticity of origin and integrity of content of the electronic Tax Invoice
should be guaranteed.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
Retention of documents for Claim of input tax

As per Article 59 of the Executive Regulation of the Federal Law No. 8 of the 2017,
states the following for the Tax Invoices shall contain the following particulars:

A sequential Tax
Invoice number or
a unique number The name, The name,
The received
The words “Tax that enables address, and Tax address, and Tax
A description of acknowledgment
Invoice” are clearly identification of Registration Registration The date of issuing
the Goods or from the customer
displayed on the the Tax Invoice Number of the Number of the the Tax Invoice
Services supplied. for accepting the
invoice. and the order of Registrant making Recipient where
Tax Credit Note.
the Tax Invoice in the supply. he is a Registrant.
any sequence of
invoices.

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
VAT Tax Rates on the Education Sector in the UAE
Content VAT Rate
Private and public-school education (excluding higher education) and related goods and services 0%
provided by education institution
Higher education provided by institution owned by government or 50% funded by government, and 0%
related goods and services
Education provided by private higher educational institutions, and related goods and services 5%

Nursery education and pre-school education 0%

School uniforms 5%

Stationery (except curriculum books) 5%

Electronic equipment (tablets, laptops, etc.) 5%
Renting of school grounds for events 5%
After school activities for extra fee 5%
After school activities supplied by teachers and not for extra charge 0%
School trips where purpose is educational and within curriculum 0%
School trips for recreation or not within curriculum (if additional fee charged) 5%

ITC Accounting & Tax Consultancy | Contact: +971 52 320 5486 | contact@itc-tax.com | www.itc-tax.com
THANK YOU

Contact Us
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+971 52 320 5486
Email:
contact@itc-tax.com
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