I run a school or institute — are educational services VAT-exempt?

Under Article 40 of the VAT Executive Regulation (as clarified by Cabinet Decision No. 100 of 2024), an educational service is zero-rated only if it meets two core conditions: the curriculum is recognized by the relevant federal or local education authority, and the institution itself is officially recognized by that same authority. If it's a higher-education institution, it must also be government-owned or receive more than 50% of its funding from federal or local government.

Goods and services directly tied to the curriculum, such as printed and digital course materials, get the same zero-rated treatment. But plenty of things sold alongside the core service stay at the standard 5%: uniforms, electronic devices like laptops and tablets, food and beverages, predominantly recreational trips, and student club membership fees. Private training institutes and professional courses that aren't part of a recognized curriculum are generally fully standard-rated. RASEEKH helps educational institutions split invoices correctly between exempt and taxable line items, so the VAT return comes out accurate before an audit ever happens.