GCC VAT Indirect Tax FAQs
The Gulf Cooperation Council (GCC) has announced implementation plans for Value Added Tax (VAT) from 1st January 2018. The impact this has to Pearson VUE and its customers is described here. The following countries are in the GCC. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Pearson VUE’s implementation schedule
Per the schedule below, Pearson VUE will begin to collect Value Added Tax (VAT) on business to consumer (B2C) sales made to candidates and on business to business (B2B) sales made to companies or test centres that purchase vouchers.
United Arab Emirates - June 1, 2018
Saudi Arabia - June 1, 2018
Bahrain - January 1, 2019
Kuwait - TBD
Oman - April 16, 2021
Qatar - TBD
The GCC is working on a solution for this. Once it is available we will add it here.
Services provided in thecountry on or after the implementation date will be charged the appropriate VAT (5%). Sales to businesses may qualify for a reverse charge.
June 1, 2018 - this change impacts any test-taker who sits an exam in United Arab Emirates or Saudi Arabia or makes other purchases, customers in United Arab Emirates or Saudi Arabia who purchase vouchers and test centres in United Arab Emirates or Saudi Arabia that make registrations at the test centre.
January 1, 2019 - this change impacts any test-taker who sits an exam in Bahrain or makes other purchases, customers in Bahrain who purchase vouchers and test centres in Bahrain that make registrations at the test centre.
April 16, 2021 - this change impacts any test-taker who sits an exam in Oman or makes other purchases, customers in Oman who purchase vouchers and test centres in Oman that make registrations at the test centre.
Refer to your payment confirmation or invoice sent to you by email. The taxpayer name, address and taxpayer ID are provided as part of the payment receipt or invoice. If the taxpayer ID says ‘requested’ it means that Pearson has applied for a taxpayer ID and is awaiting this information from the tax authorities.
Where sales are made by Pearson VUE outside of the GCC, in some cases it will be the responsibility of the customer to account for local VAT via the Reverse Charge.
Reverse charge GST applies where overseas businesses provide services to businesses in the GCC who are registered for VAT. When the sale is made from the Pearson VUE US company, the services that Pearson VUE provides to businesses in the GCC are subject to the reverse charge. In simple terms, the reverse charge moves the responsibility for recording VAT on a transaction from the overseas business to the business customer in the GCC. This means that instead of Pearson VUE charging VAT on its services, the VAT is reported by the business customer when the purchaser's business files VAT returns with the tax authorities.
- Reverse charge only applies to companies / businesses (not individuals) and only for business to business (B2B) transactions. When the sale is made, the company must provide their TRN number (taxpayer ID) to Pearson VUE. This is how the sale is classified as a business to business sale.
- Pearson VUE invoices / receipts show zero (0) VAT and display the amount of tax that is applicable, along with text that the transaction may be subject to reverse charge. The buyer self accounts for the tax when they submit their taxes to the local govt.
Test Centre Administrators
Using the contact information on your monthly test centre statement, send email with your site ID, site name and TRN number.
No, the test centre statement will not change.
When a candidate registers with Pearson VUE’s contact centre, Pearson VUE’s website or with the Test centre and either a credit card or a voucher is used then Pearson VUE emails the candidate a payment confirmation.
If the payment was made using a Test centre business credit card, please make sure that the Billing Information is correct on the order payment screen. The default can be to the candidate’s address, but can be changed as needed.
Reverse charge provisions will apply if Pearson VUE has a valid VAT registration number on file from your Pearson VUE testing centre and depending on the payment type. Examples of these types of transactions are typically voucher sales or credit card registrations if made at your centre and the form of payment is your business’ credit card. In these cases, VUE will not collect VAT on the transaction but will track and report these sales to tax authorities as required by tax authorities.
We are aware that exemptions exist for education services provided by certain providers. If you believe that Pearson VUE should not be charging tax on this basis please send an email to your Channel Sales representative with your company name and proof of exemption. Pearson VUE will confirm once the system has been configured for your company to be exempt.
Voucher Store Customers
Ensure that your Tax Registration Number (TRN) is entered into the taxpayer ID field on the voucher order form.
Vouchers that were sold for 100% of the exam fee prior to when Pearson VUE's system started collecting tax in a given country will be redeemed for the total price of the test including tax. Pearson VUE will not charge tax to the test-taker at time of voucher redemption. When vouchers or discounts for less than 100% are redeemed on or after when Pearson VUE’s system started collecting tax, then tax will be charged to the test-taker on the remaining amount due.
We are aware that exemptions exist for education services provided by certain providers. If you believe that Pearson VUE should not be charging tax on this basis please send an email to the Pearson VUE Voucher Store with your company name and proof of exemption. Pearson VUE will confirm once the system has been configured for your company to be exempt.
NOTE: Any orders placed prior to your company being marked as exempt in the Pearson VUE system will be subject to VAT.
Pearson VUE collects tax at the point the registration fee is collected which is when the original test appointment is booked. If the original appointment was booked before the system started collecting tax, you will not be charged tax on that transaction. Test-takers will pay tax on any new registrations made on or after Pearson VUE's system started collecting tax.