GST/VAT implications of distance learning in a digital world

COVID-19 dashed the dreams of millions of students who had hoped to study for their degrees at universities at home or abroad. Instead, many have had to stay home and use distance learning to attend their classes. As a result of the change in the way courses are delivered, educational institutions need to carefully consider a range of the commercial and tax implications flowing from these changes. In particular, the growth of the use of indirect taxes as a way of taxing the digital economy means that education institutions, and other providers of online training and learning content, need to consider whether the supply of virtual learning falls within the Goods and Services Tax/Value Added Tax (GST/VAT) in countries where students are located.

In this PwC global indirect taxes insight we explore the main issues in this area and summarise key recommendations for impacted suppliers and platforms. It’s worth noting that this area has come under more scrutiny on deals where the subject target is an impacted seller of online education, training or content or other remote services.