VAT on Educational Services in the UAE - Shuraa Tax

The UAE introduced Value Added Tax (VAT) on 1 January 2018, with a standard rate of 5% on most goods and services. The main aim was to create a new source of government revenue and reduce reliance on oil income. Under this system, businesses charge VAT on their sales and can also recover the VAT they pay on their purchases.
When it comes to VAT on educational services in the UAE, the rules are slightly different. The UAE government has given special treatment to this sector to make sure learning stays affordable. For example, many core education services provided by qualifying institutions, like tuition fees, exams, and curriculum-related books, are zero-rated. This means no VAT is charged to parents, but schools can still claim back the VAT they spend on their costs.
On the other hand, some services, such as student transport, are exempt, which means no VAT is charged, but schools cannot recover the VAT they pay on related expenses. There are also cases where the standard 5% VAT applies, like on school uniforms, electronic devices (laptops, tablets), canteen food, and extracurricular activities that require extra fees.