Education is a fundamental necessity for every individual, playing a crucial role in a nation’s development and prosperity. Recognizing its significance, many countries exempt education services and facilities from taxes. In the UAE, the education sector benefits from VAT exemptions under specific conditions, reflecting its commitment to supporting education accessibility and affordability.
Understanding VAT Regulations for Education Services

According to the Federal Law No. 8 of 2017 Clause (13) of Article 45 on VAT and its Executive Regulation Article 40, specific regulations apply to the education sector in the UAE. Here’s a breakdown of these regulations:
1. Zero Percent VAT on School Education: Education services provided by institutions up to high school level, recognized by the government and following a government-approved curriculum, are subject to zero percent VAT.
2. Higher Education Institutions: For higher education institutions to qualify for zero percent VAT, they must be either government-owned or receive more than 50 percent of their funding from the government.
Government Recognition and Authority
The term “government” here includes both the Federal and local governments of the respective Emirates. The Ministry of Education regulates the education sector at the federal level, while local authorities govern it at the Emirate level.
Key Parameters for Zero Percent VAT Eligibility
The UAE VAT law outlines two primary criteria for educational services to be eligible for zero percent VAT:
1. Recognized Educational Institutions: The educational services must be provided by an institution recognized by the government.
2. Government-Recognized Courses: The courses offered must be recognized by the government.
Standard Rate VAT for Non-Qualifying Services
Educational services not meeting these criteria will be subject to the standard VAT rate. In simpler terms, when educational services are provided by a “qualifying educational institution” (including nurseries, preschools, high schools, and higher educational institutions), they are eligible for zero percent VAT.
VAT on Related Goods and Services in the Education Sector
Educational services provided by qualifying institutions are charged VAT at zero rates, but it is crucial to note that goods and services related to education might be subject to different VAT rates based on their classification and the qualifying status of the institution offering them.
By understanding these VAT regulations, educational institutions in the UAE can ensure compliance while taking advantage of applicable tax benefits.
Goods and Services Charged at 0% VAT Rate
The following goods and services in the UAE education sector are charged at a zero percent VAT rate:
1. Tuition Fees: Fees paid for educational courses provided by recognized educational institutions.
2. Books and Materials: Educational materials, whether printed or digital, provided by qualifying educational institutions.
3. Nursery and Pre-School Education: Educational services offered by recognized nurseries and pre-schools.
4. School Education: Services provided by government-recognized schools up to high school level.
5. Higher Education: Educational services provided by higher education institutions that are either government-owned or receive more than 50% of their funding from the government.
Goods and Services Exempt from VAT
The following goods and services related to the education sector are exempt from VAT in the UAE:
1. Payment for School Transportation: Fees paid for the transportation of students to and from educational institutions.
2. Student’s Accommodation Expenses: Costs associated with student accommodation provided by or through recognized educational institutions.
Goods and Services Charged VAT at the Standard Rate of 5%
The following goods and services in the UAE education sector are subject to the standard VAT rate of 5%:
Fees for School Uniforms: Charges for uniforms required by educational institutions.
Fees for Electronic Equipment: Costs for electronic devices and equipment used by students.
Expenses of Food and Beverages Provided on Campus: Costs for food and drink supplied within the school or university premises.
Payments for Recreational School Trips: Fees for non-educational trips organized by schools.
Fees for Extra-Curricular Activities: Charges for activities outside the standard curriculum offered by educational institutions.
Important Considerations for VAT Application
Standard Rate for Non-Enrolled Individuals: Goods and services supplied to individuals not enrolled in educational institutions will be charged the standard VAT rate.
Standard Rate for Non-Educational Materials: Goods excluded from educational materials, such as notebooks and stationery, will be charged VAT at the standard rate.
Uniforms and Clothing: Uniforms and any other clothing required by educational institutions are subject to VAT at the standard rate.
Zero Rate for Approved Curriculum Textbooks: Textbooks prepared according to the approved curriculum are taxable at zero percent VAT.
Standard Rate for Extra Fees: Additional fees for items such as identity card preparation and art supplies are subject to the standard VAT rate, as they are not directly related to zero-rated educational services.
Membership Fees: Membership fees for organizations, clubs, and similar entities collected from students are charged VAT at the standard rate.
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