Abu Dhabi: As a way to raise awareness about taxes, the Federal Tax Authority (FTA) launched the "Basic Tax Information Bulletin".
As part of its 2020 campaign, the first edition of the bulletin focuses on tax treatment for the education sector which includes schools, pre-schools and nurseries.
The document, which is available on the FTA's website, stated that the supply of educational services is zero-rated. This includes printed or digital reading material that is related to the recognised curriculum.
In addition, the bulletin noted that transportation services are exempt from taxes. This means transporting students from and to the location of the educational institution.
However, supplies that are not related to the curriculum and goods or services that are provided by a business that is not an educational institution or is considered as "standard rated" are subject to a five per cent Value Added Tax (VAT).
The bulletin also adds that any educational institution that makes zero-rated and standard-rated supplies with a value that exceeds Dh375,000 in the last 12 months or forecast to exceed it in the upcoming 30 days, must register for VAT and issue a tax invoice.
To be eligible to recover input VAT, educational institutions must be registered.
‘Basic Tax Information Bulletin' service is part of the FTA's efforts to educate businesses regarding their rights and obligations under the UAE tax system.