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Frequently Asked Questions on VAT

Last updated on 17 August, 2018

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Does a qualifying educational institution have to register for VAT?

Qualifying institutions need to register for VAT if their supplies exceed the Mandatory Registration Threshold of 375,000 AED.

Educational services provided by a qualifying educational institution are a zero-rated supply. An institution can apply for exception from registration using the registration application, provided it doesn’t provide any goods or services that are taxed at the standard rate (5%).

Applying for an exception will relieve the institution of the burden of filing regular returns, but would also mean the institution cannot recover the input tax incurred on its expenses.

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