INTERNATIONAL INDIAN PUBLIC SCHOOL-RIYADH
15 February 2018 Circular No: IIPS/Cir/17-18/294
VAT on Tuition / Transportation fee
You are all aware that the Kingdom of Saudi Arabia (KSA) has implemented Value Added Tax (VAT) with effect from 1st January 2018. According to the VAT law, all imports and supplies of goods and services in KSA will be subject to VAT. The standard VAT rate is 5%.
It is also stipulated that, certain goods will be subject to zero rate or will be exempted from the VAT. Our school being a Community school and furthermore a non-profit organization may be exempted from the VAT; as of now we don’t have any clarification from the authorities. We are already exempted from Zakat.
Please be informed that if VAT is imposed on Community schools by the General Authority of Zakat and TAX (GAZT), parents will have to bear the tax with retrospective effect. We are constantly in touch with Ministry of Education and the authorities concerned for a clarification in this regard.
Submitted for your understanding and readiness.
We humbly request your utmost understanding, cooperation and support in this matter for the smooth functioning of the school.
K M Abdul Azeez
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