Value Added Tax (VAT)

 

Zain Saudi Telecommunications Company cares to keep you informed of new rate for Value Added Tax (VAT) and regulations on its telecommunications services starting from 1 July 2020 the VAT will be increased to 15%

We encourage our dear customers to access VAT law and implementing regulations through the following link: https://www.vat.gov.sa/en

VAT Application to Zain Services

Starting 1st of July 2020. VAT will be increased to all products and services provided to you by Zain Saudi Telecom Company. 


Zain Saudi Arabia is obliged to implement the new changes 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 applied for all postpaid voice & data packages.
  • VAT depend on the monthly due amount that is reflected in the monthly bill at the beginning of each month.
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  • FOR NEW CUSTOMERS

    The price of the new Prepaid SIM will include VAT

     

    Example:

    Package Name

    Price before VAT

    End user Price after VAT

    		  

    Zain line

    SAR 30

    SAR 34.5

    		  

  • VAT will be paid upfront along the card face value or will be deducted from recharge balance. 

    Denomination (SAR)

    		 Prices of Scratch cards Prices for EVD
    Pre-loaded Amount (SAR) End-User Price (SAR) Pre-loaded Amount (SAR) End-User Price (SAR)
    20 SAR 17.39 20 17.39 20
    30 SAR 26.08 30 30 34.5
    50 SAR 43.47 50 50 57.5
    100 SAR 86.95 100 100 115
    300 SAR 260.87 300 300 345

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

    • 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.

  •  

    • 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 increase VAT with effect from July 1, 2020

    • What is the VAT amount?

    It is additional standard rate of 15% 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 example:

    Example:

     

     

     

    Final amount including VAT

    Due Amount

    Add on Service

    Monthly Fee

    Package Name

    99 + 14.85 = 113.85

    SAR 99

    SAR 0

    SAR 99

    Shabab 99

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