- Universities
- Higher Education institutions
No. Certain supplies in this sector are zero-rated and some others are exempt.
a. Zero-rated supplies
The supply of education services by Universities and Higher Education institutions is zero-rated if:
- The institution is either owned by the federal or local government or receives more than 50% of its annual funding directly from the federal or local government (“qualifying institute”); and
- The curriculum and the educational institution are recognized by the competent federal or local government entity.
A qualifying institute may, subject to specific exclusions, also zero-rate the following:
- The supply of goods or services where the supply is directly related to the zero-rated educational service; and
- The 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 higher education institution and vice versa are exempt.
c. Standard-rated supplies