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Value Added Tax (VAT)

Zain Saudi Telecommunications Company cares to keep you informed of the implementation of Value Added Tax (VAT) regulations on its telecommunications services starting from 1 January 2018 (Rabi Al-Thani 14, 1439H).
 

Value Added Tax
Value Added Tax (or VAT) is an indirect tax imposed on some goods and services. VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets.
 

Introduction
VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. Saudi Arabia is committed to impose VAT by Royal Decree No. (M/113) dated 2/11 /1438H and its executive regulations, with effect from 1 January 2018 (Rabi Al-Thani 14, 1439H). VAT will be introduced at a standard rate of 5%
We encourage our dear customers to access VAT law and implementing regulations through the following link: www.vat.gov.sa


VAT Application to Zain Services 
Starting 1st of  January 2018 (Rabi Al-Thani 14, 1439H). VAT will apply to all products and services provided to you by Zain Saudi Telecom Company.
 

Zain Saudi Arabia is obliged to implement the regulation of Value Added Tax (VAT) and collect it on behalf of the Zakat and Income Tax Authority. Accordingly, the Company has made some modifications to the terms, conditions and prices of the services provided to you to comply with the implementation of VAT regulation starting from the mentioned date.
 

VAT on Zain products?

VAT is applied to all products and services provided by Zain depending on the classification of each product.

Postpaid Products:

  • VAT will be applied for all postpaid voice & data packages.
  • VAT will depend on the monthly due amount that is reflected in the monthly bill at the beginning of each month

 

Prepaid Packages:

  • For New Customers: · The price of the new Prepaid SIM will include VAT

SIM Price

SAR 30

  Initial Balance (Pre-loaded amount)

SAR 23.57

VAT

SAR 1.43

EX:

Package Name

Pre-Loaded Amount (SAR)

Pre-loaded Amount After VAT (SAR)

End user Price after VAT

Khateer

25

23.57

30

 

 

  • For Existing customers:  VAT is applied and will deducted from the recharge amount.

 

 

Recharge Card:

 

VAT will applied on all kind of recharge cards and Electronic Vouchers

Recharge Price

VAT* (SR)

Recharged Amount after VAT (SR)

SR 15

0.72

14.28

SR 20

0.96

19.04

SR 30

1.43

28.57

SR 50

2.39

47.61

SR 100

4.77

95.23

 

Data SIM cards and Data Vouchers:

All price of the data SIM cards and data Vouchers are VAT inclusive.

Add on Services:

  • Postpaid lines : VAT will be applied on all add-on services which mean the services with non- recurring charges that cause an increase in the amount of the bill
  • Prepaid lines: Customer using the existing balance, VAT will not be applicable.

General Questions:

  • What is Value Added Tax (VAT)?

Value Added Tax (or VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses.  Saudi Arabia is committed to impose VAT with effect from January 1, 2018 (Rabi Al-Thani 14, 1439).

  • What is the VAT amount?

It is additional standard rate of 5% of your monthly due amount that is reflected in your monthly bill

  • Does VAT apply on Zain Postpaid package customers?

Yes, it is applied for all Zain Postpaid voice & data customers.

  • Is the VAT applied for the package monthly fees only?

No, it is applied for the monthly fees and any additional usages and adds on services that you have consumed during the month.

  • Is the VAT amount fixed every month?

No, it is not as it depends on your monthly due amount that is reflected in your monthly bill.

  • Is the VAT applied for all services and packages?

No, it is applied for the charged services only.  So any service you have it in your package as free will not be charged for VAT

  • How can I know the VAT amount for my monthly bill?

The VAT amount will be shown every month in your monthly bill.

  • How much is the increase that I have to pay every month?

It depends on the postpaid package that you have.  Below are some examples:

Example 1:

Before Applying VAT

After Applying VAT (starting from 1st of Jan 2018)

Package Name

Monthly Fee

Add on Service

Due Amount

Total Amount

Package Name

Monthly Fee

Add Service

Due Amount

Total Amount

Shabab 130

130

 SAR

0

SAR

130

SAR

130

SAR

Shabab 130

130 SAR

0

SAR

130 SAR

130+6.5(VAT)

= 136.5 SAR

 

Example 2:

Before Applying VAT

After Applying VAT (starting from 1st of Jan 2018)

Package Name

Monthly Fee

Add on Service

Due Amount

Total Amount

Package Name

Monthly Fee

Add Service

Due Amount

Total

Amount

Postpaid 349

349

SAR

20

 SAR

369

SAR

369

SAR

Postpaid 349

349

 SAR

20

 SAR

369

 SAR

369+18.45(VAT)

=387.45 SAR

 

  • How much do I have to pay if I buy 2GB data bundle on postpaid 349?

You need to pay following

Package Name

Monthly Fee

Data add on ( 2 GB)

Due Amount

Total Due Amount ( including VAT)

Postpaid 349

349 SAR

45 SAR

394 SAR

394+19.7 (VAT) = 413.7 SAR

 

 

Data SIM cards and Data Vouchers:

  • Do I have to pay VAT on top of the Data SIM cards and Data Voucher prices?

All prices of data SIM cards and data voucher are VAT inclusive.