Author: Mahesh Maddu

The UAE education sector includes more than 2,300 private schools, 80+ higher education institutions, and thousands of training providers, all of which may face different VAT obligations depending on the services they offer. Understanding the UAE Education Sector VAT rules is essential to correctly apply zero-rated and exempt supplies, recover input VAT where permitted, and remain compliant with Federal Tax Authority requirements. This guide explains the key VAT considerations, common compliance risks, and the areas education providers should review.

The UAE DMTT Update brings greater certainty for multinational enterprise (MNE) groups after Ministerial Decision No. 96 of 2026 formally adopted the latest OECD guidance. The regime applies to businesses with EUR 750 million (approximately AED 3.15 billion) in consolidated revenue and supports the implementation of the 15% global minimum tax under the OECD Pillar Two framework.