Are Meal Fees Collected from Preschool Children Subject to Value-Added Tax?

Clause 13, Article 4, Circular 219/2013/TT-BTC stipulates the subjects exempt from value-added tax, including the following:

- Teaching, vocational training according to the provisions of law, including foreign language teaching, computer science; teaching dance, singing, painting, music, drama, circus, physical education, sports; child-rearing and teaching other vocations aimed at educating, fostering cultural levels, professional and technical knowledge.

- In cases where educational institutions from preschool to high school levels collect meal fees, transportation fees for picking up and dropping off students, and other fees in the form of collection and payment on behalf of others, such meal fees, transportation fees for picking up and dropping off students, and such collection and payment on behalf of others are also exempt from tax.

- Fees for boarding of students; training activities (including the organization of exams and issuance of certificates within the training process) provided by the training institution are exempt from VAT. In cases where the training institution does not directly organize the training but only organizes exams and issues certificates within the training process, the activities of organizing exams and issuing certificates are also exempt from tax. In cases where exam and certificate issuance services are provided outside the training process, they are subject to VAT.

According to the aforementioned regulations, educational institutions from preschool to high school levels collecting meal fees mean that these meal fees fall under the subjects exempt from value-added tax. Therefore, in your case, if your school collects meal fees from preschoolers, these fees are not subject to value-added tax.

Sincerely!