A Study on the VAT Taxation for the Education Service

This paper is aim to analyse the current VAT exemption's drawback, to compare major VAT exemption items such as educational service with major foreign countries, and aim to research for improvement of extension in tax base. VAT exemption's defect and improvement plan are as follows. Considering definition and category of public and private education service, VAT should be imposed on private education institution from the perspective of non-profitability and public concern unless it has complementary aspect of regular school class. For example, accredited private institution under Life-long Education Act complements regular school class, so it is regarded as public education and VAT exemption. There is a similar case for condition of tax exempted education service in Japan.