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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 (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

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  • Prepaid Packages

    FOR NEW CUSTOMERS

    The price of the new Prepaid SIM will include VAT

       

    SIM PRICE

    VAT VALUE

    INITIAL BALANCE

    (PRE-LOADED AMOUNT)

       
     

    30.00 SAR

    1.43 SAR

    23.57 SAR

    Buy Now  

     

    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

    (INCLUDING VAT)

    VAT VALUE RECHARGE VALUE  
    15.00 SAR 0.72 SAR 14.28 SAR Buy Now
    20.00 SAR 0.96 SAR 19.04 SAR Buy Now
    30.00 SAR 1.43 SAR 28.57 SAR Buy Now
    50.00 SAR 2.39 SAR 47.61 SAR Buy Now
    100.00 SAR 4.77 SAR 95.23 SAR Buy Now
  • 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
      Package Name Monthly Fee Add on Service Due Amount Total Amount  
      Shabab 130 130 SAR 0 SAR 130 SAR 130 SAR  
    After Applying VAT (Starting From 1st Of Jan 2018)
      Package Name Monthly Fee Add Service Due Amount Total Amount  
      Shabab 130 130 SAR 0 SAR 130 SAR 130+6.5(VAT) = 136.5 SAR  

     

    Example 2:

    Before Applying VAT
      Package Name Monthly Fee Add on Service Due Amount Total Amount  
      Postpaid 349 349 SAR 20 SAR 369 SAR 369 SAR  
    After Applying VAT (Starting From 1st Of Jan 2018)
      Package Name Monthly Fee Add Service Due Amount Total Amount  
      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.

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