BASIC TAX INFORMATION BULLETIN Education Sector (Nurseries, Pre-schools, and Schools)

1. Who shouldreadthis flyer?

- Nurseries/Pre-schools

- Schools

2. Is VAT chargeable on all the supplies in the Education Sector?

No. Certain supplies in this sector are zero-rated and some others are exempt.

a. Zero-rated supplies

The supply of educational services is zero-rated where both the curriculum and the educational institution are recognized by the competent federal or local government.

Where educational services are zero-rated, the provision of the following supplies by the same institution is also zero-rated:

- Supply of goods or services where the supply is directly related to the zero rated educational service; and

- Supply of printed or digital reading material which are related to the recognized curriculum.

b. Exempt supplies

Services of transporting students from home to the location of the educational institution and vice versa are exempt.

c. Standard-rated supplies

VAT will be charged at the standard-rate on the following (among others):

- Supplies made to persons who are not enrolled in the educational institution;

- Uniforms, electronic devices, food and beverages;

- Field tri...