VAT on School Fee

Dear Parent,
As you may be aware, the Kingdom of Saudi Arabia has announced to implement Value Added Tax (VAT) from 1st of January, 2018. The Kingdom has already issued its National VAT Law vide Royal Decree No. M113 dated on 1438/11/2 H and published it’s Implementing Regulations issued by GAZT Board of Directors Resolution No.3839 dated on 1438/12/14 H.
VAT is required to be levied and charged by all International Schools on the supply of goods and services at the standard rate of 5% unless specific exemption is provided by the relevant authorities.
Pakistan International School (English Section) is legally obliged to charge VAT on the tuition fee and other associated services and supply of goods. Furthermore, as per Implementing Regulations issued by the General Authority of Zakat and Tax (GAZT), PISJ-ES will charge VAT @ 5 % on the existing fee structure effective January 01, 2018. Fee paid in advance for the period that falls in 2018 is also subject to VAT. Those parents will be charged to pay the VAT portion on advance payment for which the service will be delivered in 2018.