Is VAT charged on event tickets?

Article 40 – Zero-rating Education Services 1. The supply of educational services shall be subject to the zero rate if the following conditions are met: 24 Article amended as per Cabinet Decision No. 100 of 2024. Cabinet Decision No. 52 of 2017 and its amendments – As published by the Ministry of Finance 30 a. The supply of educational services is provided in accordance with the curriculum recognised by the federal or local competent government entity regulating the education sector where the course is delivered. b. The supplier of the educational services is an educational institution which is recognised by the federal or local competent government entity regulating the education sector where the course is delivered. c. Where the Supplier of educational services is a higher education institution, 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. 2. A supply of Goods or Services made by educational institutions identified in Clause 1 of this Article shall be zero-rated where the supply is directly related to the provision of a zero-rated educational service. 3. Printed and digital reading material provided by educational institutions identified in Clause 1 of this Article and which are related to the curriculum of an education shall be zero-rated. 4. As an exception to Clause 2 of this Article, the following supplies shall not be zerorated: a. Goods and Services supplied by the educational institution referred to in Clause 1 that are made available to Persons who are not enrolled in the educational institution. b. Any Goods other than educational materials provided by the educational institution referred to in Clause 1 that are consumed or transformed by the students undertaking the educational service for the purposes of education. c. Uniforms or any other clothing which are required to be worn by the educational institution referred to in Clause 1, irrespective of whether or not supplied by the educational institutions as part of the supply of educational services. d. Electronic devices in relation to educational services, irrespective of whether or not supplied by the educational institution referred to in Clause 1 as part of the supply of educational services. e. Food and beverages supplied at the educational institution referred to in Clause 1, including supplies from vending machines or vouchers in respect of food and beverages. f. Field trips, unless these are directly related to the curriculum of an education service and are not predominantly recreational. g. Extracurricular activities provided by or through the educational institution referred to in Clause 1 for a fee additional to the fee for the education service. Cabinet Decision No. 52 of 2017 and its amendments – As published by the Ministry of Finance 31 h. A supply of membership in a student organisation.

Educational Institution should then issue a Tax Credit Note in respect of the standard rated Tax Invoice for the application or registration fee, and issue a new Tax Invoice for the zero-rated tuition.11 Registration fees charged to students who are already enrolled in a program qualify for zero-rating, provided the fees are for an integral part of, and directly related to zerorated Qualifying Educational Services. Where students leave the educational institution before the end of the academic year or term, the educational institution may refund part of the registration or enrolment fee. Where VAT was accounted for on the fee and a Tax Invoice was issued, the educational institution should issue a Tax Credit Note for the amount refunded. 4.4.2. Events Fees charged by a Qualifying Educational Institution for fund raising and similar events will be subject to VAT where the event is not directly linked to, and integral to the course of study. For example, an event to sell Goods (e.g. cakes) to raise funds for a new library is not primarily carried out for the purposes of delivering the education. The sale of the Goods would be subject to VAT, except where the sale is conducted by and on behalf a non-Taxable Person, e.g. the parents of the students. However, where the Goods are sold by a Taxable Person, e.g. a caterer, the supply would, generally, be subject to VAT and the Taxable Person would be required to account for the VAT. This can be contrasted with a concert held by a school to showcase student achievement and progress in music or the performing arts, and where this is part of the Qualifying Curriculum. The sale of tickets to a ballet or musical recital that forms part of the student’s examination under a Qualifying Curriculum would qualify for zerorating if it can be evidenced that the concert or event is directly linked to the provision of education, e.g. where it forms part of a music student’s examination. 4.4.3. Field trips Fees charged for a field trip by a Qualifying Educational Institution may be subject to VAT at the zero-rate where the following conditions are met:12 • • the field trip is directly related to the Qualifying Curriculum, and the field trip is not predominantly recreational in nature. Where the field trip does not meet both conditions, the supply would, generally, be 11 Where the conditions in Article 59(3) of the VAT Executive Regulation are met, the Qualifying Educational Institution is not required to issue a Tax Invoice for a wholly zero-rated supply. 12 Article 40(4)(f) of the VAT Executive Regulation. VAT Guide | Education | VATGED1 11