Tourists in the UAE will get refunds on the returns
Dubai: According to the new VAT regulations in UAE, residents of UAE will be charged VAT on food, water and also power. Educational institutions funded by Government will not be charged VAT but the rest of the institutions will be.
Khalid Al Bustani, Federal Tax Authority Director-General said the tourists in the UAE will also get refunds on the returns this Wednesday. He also said ahead of VAT implementation the Federal Tax authority is planning to work this project along with other parties and is expecting to submit it.
The zero percent tax for educational services is only available for recognized institutions and which offer a recognized curriculum.
He made it clear that the recognition of these educational institutions should mandatorily be given by the education ministry or the competent government authority.
He said, “In case of higher education institutions, the institution should be either owned by the Federal or local Government or receives more than 50 per cent of its annual funding directly from the Federal or local Government.” He said that services in these educational institutions shall be zero-rated.
Adding that “We expect tuition fees, study material for the curriculum, medical fees, registration fees, admission fees, exam fees would be 0 percent.”
However, the services that shall be taxable at 5 percent under the recognized educational institutions are:
1. Goods & services supplied to persons who are not enrolled in the institute.
2. Any goods other than educational material provided which are not related to the curriculum of the educational institute.
3. Supply of School Uniforms as required by the educational institute.
4. Providing electronic devices irrespective of whether or not supplied as a part of educational services.
5. Foods & Beverages supplied at the educational institutions
6. Excursions or field trips unless directly related to the curriculum of the educational services.
7. Extracurricular activities provided by or through the educational institutions.
8. Supply of membership in a student organization.