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.
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
Why was this change made?
Per GCC VAT laws, Pearson VUE is required to charge VAT on some of its sales in the GCC.
Where can I verify Tax Registration Numbers?
The GCC is working on a solution for this. Once it is available we will add it here.
Who does this impact?
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.
What are the Pearson tax registration details?
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.
What is Pearson VUE’s position on Reverse Charges?
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.
What is the reverse charge concept and how does it work with Pearson VUE?
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.
Key points:
- 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.
How do I inform Pearson VUE of the Tax Registration Number (TRN) number for my test centre?
Using the contact information on your monthly test centre statement, send email with your site ID, site name and TRN number.
Will the test centre statement change?
No, the test centre statement will not change.
Does Pearson VUE issue a receipt / invoice to the candidate?
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.
How does Pearson handle reverse charges in the GCC for test centres?
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.
My test centre is an eligible body or is exempt from tax. What do I need to do?
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.