GenzeeUAE Tax Authority Issues First Rulebook on School Fees and VAT
The UAE's Federal Tax Authority published its first dedicated VAT guide for the education sector, VATGED1, dated June 2026 and released on 1 July 2026, spelling out in far more detail than before which school-related fees qualify for zero-rated VAT.
What the guide clarifies
As reported by outlets tracking VAT policy including VATupdate and Deloitte's tax insights, zero-rating now applies narrowly — only when both a "Qualifying Educational Institution" and a "Qualifying Curriculum" are present. Recognised nurseries, schools and certain government-funded higher education institutions qualify, but private universities that don't meet a 50% government-funding threshold do not. Printed and digital course materials and non-recreational field trips can still be zero-rated, while items like uniforms, laptops and canteen food remain subject to the standard 5% VAT rate.
Why parents and students should care
The guide marks a shift from informal bulletin-level guidance to a codified sector rulebook, meaning schools now face a higher bar to justify zero-rating any given fee. For families paying tuition, it is worth checking whether ancillary charges — transport, uniforms, devices — on your invoice are being taxed correctly under the new guidance.
Use our UAE VAT Calculator to check how 5% VAT applies to a fee before you pay it.
Note: This is a plain-language summary, not tax/financial advice. Rates and rules can change; verify your specific case with the relevant authority or a qualified professional. See our editorial policy for how we source and date these updates.