Can I be exempted from VAT registration if I only make zero-rated supplies?

Article 50 Mandatory Registration 1. For the purposes of implementing this Agreement, a Taxable Person shall be obliged to register if : a) he is resident in any Member State; b) the value of his annual supplies in that Member State exceeds or is expected to exceed the Mandatory Registration Threshold. 2. The Mandatory Registration Threshold shall be SAR 375,000 (or its equivalent in the GCC State currencies). The Ministerial Committee has the right to amend The Mandatory Registration Threshold after it has been in force for three years. 3. A non-resident of a Member State shall be required to register in that State regardless of his business turnover if he is obliged to pay Tax in that State under this Agreement. Registration can be done directly or through the appointment of a tax representative with the consent of the Competent Tax administration. The tax representative shall take the place of the Non-Resident Person in all its rights and obligations provided for in this Agreement, subject to the provisions of Article 43(2) of this Agreement. 4. A Taxable Person who makes only zero-rated supplies may request to be excluded from the Mandatory Registration requirement for Tax purposes in accordance with the conditions and provisions determined by each Member State.

BASIC TAX INFORMATION BULLETIN Education Sector (Nurseries, Pre-schools, and Schools) 1. Who should read this 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: b. - 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. 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 trips which are not directly related to the curriculum; - Extracurricular activities provided for an additional charge; - Supply of membership in a student organization; and - Goods/services provided by a business that is not an educational institution. 3. Is there a need for institutions in the Education Sector to register for VAT? Educational institutions making only zero-rated and/or standard-rated supplies are required to register for VAT provided the value of their taxable supplies and imports exceeded in the last 12 months, or is expected to exceed in the next 30 days the mandatory registration threshold of AED 375,000. An educational institution may voluntarily register for VAT if the value of its taxable supplies and imports or taxable expenses incurred exceeded in the last 12 months, or is anticipated to exceed in the next 30 days the voluntary registration threshold of AED 187,500. Where an educational institution only makes zero-rated supplies (i.e. does not make any supplies that are subject to VAT at the rate of 5%), an exception from VAT registration may be applied for via the registration application. 4. Are tax invoices required to be issued? Yes, tax invoices are required for all standard-rated and zero-rated supplies. Simplified tax invoices may be issued where the supply is made to an unregistered recipient or where the consideration for the supply made to a registered recipient is AED 10,000 or less. However, as an exception, there is no need to issue a tax invoice where the supply qualifies to be wholly zero-rated and there are sufficient records to establish the particulars of the supply.

BASIC TAX INFORMATION BULLETIN Higher Education Sector 1. Who should read this flyer? - Universities Higher Education institutions 2. Is VAT chargeable on all the supplies in the Higher Education Sector? 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: b. - 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. 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 VAT will be charged at the standard rate on the following (among others): - Supplies made to persons who are not enrolled in the higher education institution; - Electronic devices, food, and beverages; - Field trips which are not directly related to the curriculum; - Extracurricular activities provided for an additional charge; - Supply of membership in a student organization; - Rental of halls/auditorium; - Courses to employees of corporates which are not in accordance with the curriculum recognized by the competent federal or local government entity; and - Clothing required to be worn, for example laboratory coats, irrespective of whether or not supplied by the higher education institute as part of the supply of educational services. 3. Is there a need for institutions in the Higher Education Sector to register for VAT? Higher education institutions making zero-rated and standard-rated supplies are required to register for VAT if the value of their taxable supplies and imports exceeded in the last 12 months, or is expected to exceed in the next 30 days the mandatory registration threshold of AED 375,000. A higher education institution may voluntarily register for VAT if the value of its taxable supplies and imports or taxable expenses incurred exceeded in the last 12 months, or is anticipated to exceed in the next 30 days the voluntary registration threshold of AED 187,500. Where a higher education institution only makes zero-rated supplies (i.e. does not make any supplies that are subject to VAT at the rate of 5%), an exception from VAT registration may be applied for via the registration application. 4. Are tax invoices required to be issued? Yes, tax invoices are required for all standard-rated and zero-rated supplies. Simplified tax invoices may be issued where the supply is made to an unregistered recipient or where the consideration for the supply made to a registered recipient is AED 10,000 or less. However, as an exception, there is no need to issue a tax invoice where the supply qualifies to be wholly zerorated and there are sufficient records to establish the particulars of the supply.