The Federal Tax Authority launched an electronic “basic tax information” bulletin, as part of its 2020 awareness plan, aimed at constantly raising tax awareness.
The authority said in a statement yesterday, that the bulletin aims to provide tax information of interest to each sector, through specific points that are characterized by simplicity and sequencing.
The authority issued the first issue of the periodic bulletin on the tax treatment of the basic education sector (schools / pre-primary educational nurseries), which clarified that if the institution and its curricula are recognized by the competent federal or local authorities, then their services (such as printed or electronic reading materials) And its supplies directly related to these curricula are subject to a zero rate.
She pointed out that among the exempt supplies in the basic education sector are the services of transporting students from their homes to the educational institution and vice versa, while some other supplies of the sector are subject to the basic rate (5%), including supplies provided to people not affiliated with the educational institution, uniforms, electronic devices, foods, drinks, and trips Not related to the curriculum, and the goods and services provided by «Business» are not educational institutions.
According to the first issue, basic education institutions are required to register if they make supplies subject to the zero rate or the basic rate, provided that the value of their supplies exceeds 375 thousand dirhams during the previous 12 months, or it is expected to exceed them during the next (30) days, and they must Issuing tax invoices.
The registered establishment may also recover the input tax except for those incurred for exempted supplies, such as some recreational services, and purchase, lease, or make a finance lease for vehicles available for personal use.
The bulletin also examined, in detail, examples of a number of tax transactions related to the basic education sector.