How is education treated under VAT?

Educational services, and goods and services related to the main educational service, are zero-rated if supplied by any of the following educational establishments:

• Nurseries, preschools, and schools
• Higher educational institutions owned or funded by the federal or local government

This means that qualifying educational institutions cannot charge VAT on the zero-rated educational services they provide, but they will be able to recover the input VAT they pay on related purchases when they file their tax returns.

Educational services provided by entities not listed above shall be subject to the standard rate (5%).