Online Teaching in Higher Education—Indirect Tax Considerations

Adding an online digital footprint in jurisdictions in which the university already has a tax presence (e.g., through a foreign campus) may add additional risks and increase the spotlight on the university in that particular jurisdiction.

As universities embrace higher demand for online teaching and expand their online offerings to reach a larger and global audience, these institutions should carefully review whether tax considerations, such as value added taxes (VAT) for example, may negatively impact the viability of the programs offered because of exposure to tax and the creation of additional regulatory risks and obligations.