The supply of educational services shall be subject to the zero rate if the following conditions are met:

1. The supply of educational services is provided in accordance with the curriculum recognized by the federal or local competent government agency regulating the education sector where the course is delivered.

2. The supplier of educational services is an educational institution recognized by the federal or local competent government agency regulating the education sector where the course is delivered.

3. If the supplier of educational services is a higher education institution, the institution shall be either owned by the federal or local government or receive more than 50% of its annual funding directly from the federal or local government.

The supply of goods or services made by educational institutions referred to in Clause (1) of this Article shall be zero-rated if the supply is directly related to the provision of a zero-rated educational service.

Printed and digital reading material provided by educational institutions referred to in Clause (1) of this Article and related to the academic curriculum shall be zero-rated.

Notwithstanding the provisions of Clause (2) of this Article, the following supplies shall not be zero-rated:

1. Goods and services supplied by the educational institution referred to in Clause (1) or made available to persons who are not enrolled in such educational institution.

2. Any goods other than educational materials provided by the educational institution referred to in Clause (1) which are consumed or transformed by the students benefiting from the educational service for the purposes of education.

3. Uniforms or any other clothing which are required to be worn by the educational institution referred to in Clause (1), whether or not supplied by the educational institution as part of the supply of educational services.

4. Electronic devices related to the educational services, whether or not supplied by the educational institution referred to in Clause (1) as part of the supply of educational services.

5. Food and beverages supplied at the educational institution referred to in Clause (1), including any supplies from vending machines or vouchers in respect of food and beverages.

6. Field trips, unless they are directly related to the curriculum of an education service and are not predominantly recreational.

7. Extracurricular activities provided by or through the educational institution referred to in Clause (1) against fees additional to the fees of the education service.

8. Membership of a student organization.