VAT information

Postpaid Packages

VAT Implementation

All billed services will be subject to the new 15% VAT which includes package monthly fee, subscriptions fee to services, buying devices, devices instalment fees, setup fees, replacement fees, security fees, advance deposits, penalty amounts, billed amount for additional rated use outside package resources which includes for example purpose; calls, data, messages for local or international or roaming cases.

Implementation Date

15% VAT will be applied on all billed amounts from 1 Jul 2020.

Example of implementation:

A customer subscripted to Postpaid 100 package with monthly fee of SR 100 and have additional subscription for 1 GB data bundle for SR 30 monthly. Total billed amount before VAT is SR 130 (SR 100 + 30) with additional VAT of SR 19.5 (SR 130 x 15%) to make a total of SR 149.5 including VAT (SR 130 + 19.5).

Q&A

What will change from previous 5% VAT?

VAT % will increase from 5% to 15% and no change on current implementation.

Will VAT be implemented on using bundled minutes and data resources in the package?

In case of using free bundled resources, VAT will only be applied on the monthly fee of the package. But in case of additional rated usage outside bundled resources VAT will be applied on the billed amount whether it’s local, international or for roaming use.

Will VAT be clarified in the bill?

Yes, VAT amount will be mentioned in the bill.

In case of recharging a prepaid line by a transfer from a postpaid line will VAT be applied?

Yes, transferred amount will be subject to VAT and VAT amount will be added to the next bill.

Will a customer be exempted from VAT when issuing a new line?

All paid amounts from setup fee to monthly bills will be subject to VAT.

Will old bills be subject to the new VAT?

No, but new bills issued from 1 Jul 2020 will be calculated based on the new 15% VAT.

Mobily Prepaid SIM:

 

Prepaid

 

VAT will be applied to Mobily Prepaid SIM as follows:

New SIM Issuance Price (VAT Inclusive)	Initial Balance	VAT Amount	SIM Price
35 SAR	25.43 SAR	4.57 SAR	5 SAR

 

Credit Vouchers:

Old Vouchers: The VAT difference will be collected from the recharged balance starting July 1st.

Example:

recharge voucher 100 at 105 Riyals, when activated after the date of July 1, the recharge balance will be 91.30 riyals, due to deduction of the difference between the old and new VAT amount from the value of the recharged balance.

Recharge Voucher	Price )VAT Inclusive(	Balance
Recharge Voucher 15	15 SAR	13.04 SAR
Recharge Voucher 16	16 SAR	13.91 SAR
Recharge Voucher 20	21 SAR	18.26 SAR
Recharge Voucher 30	31.5 SAR	27.39 SAR
Recharge Voucher 50	52.5 SAR	45.65 SAR
Recharge Voucher 100	105 SAR	91.30 SAR

 

New Vouchers:

VAT will be collected from the purchased price or via the recharged balance starting July 1st.

Example:

recharge voucher 100 at 115 Riyals, when bought and activated on July 1st, the recharged balance will be 100 Riyals.

Recharge Voucher	Price (VAT Inclusive)	Balance
Recharge Voucher 20	20 SAR	17.39 SAR
Recharge Voucher 25	25 SAR	21.74 SAR
Recharge Voucher 30	34.5 SAR	30 SAR
Recharge Voucher 50	57.5 SAR	50 SAR
Recharge Voucher 100	115 SAR	100 SAR

 

Prepaid Bundles:

VAT will be collected for subscriptions on Prepaid Bundles when charging the balance only, but in case of activating one of the Prepaid Bundles directly by visiting our branches, the value of the VAT will be added to the Bundle price.

 

Internet Addon:

For Prepaid SIMs, VAT will be collected during the Recharge Process. For Postpaid, VAT will be added to the monthly bill.

 

Internet Voucher & Prepaid Data SIM:

 

Other VAT applications:

• E-vouchers: 15% will be added to the value of the e-vouchers.
• Electronic recharges (banks, visa): 15% will be added directly starting from the date 1-7-2020 for all recharge amounts.
• Postpaid to Prepaid Credit Transfer: 15% will be collected directly starting from the date 1-7-2020 for all transferred amounts.
• Internet vouchers and prepaid data SIM cards: prices will be adjusted to include the new 15% VAT

 

New VAT Implementation FAQs:

Will VAT be applied when purchasing a new Prepaid line?

Yes, VAT will be applied.

Will VAT be applied when subscribing to a Prepaid Bundle?

No, VAT will not be applied. It was previously applied during the credit recharge process.

Will VAT be applied when using a Prepaid line to make calls, send SMS or browse the internet?

No, VAT will not be applied. It was previously applied during the credit recharge process.

Will VAT be applied during a balance transfer from one Prepaid line to another?

No, VAT will not be applied. It was previously applied during the credit recharge process. What will happen when I buy a recharge voucher before 1-7-2020 and recharge a Prepaid line after that date?

When purchasing an old recharge voucher before the application of 15% VAT and activating this voucher after the new VAT application on 01-07-2020, the VAT difference will be deducted from recharged balance.

Example: On activation after July 1, the balance of the recharge voucher of 100 SAR at 105 SAR will be 91.30 SAR, The VAT difference will be collected from the recharged balance starting from July 1st.

Standalone Devices and accessories:

The new VAT 15% will be applied on all Smart Devices and accessories as standalone, starting from 1/7/2020

Device instalment plan:

The new VAT 15% will be applied on all Smart Devices and accessories as instalment, starting from 1/7/2020, for the current customers who got the Device instalment before 1/7/2020, the VAT on the instalment fee will 5% without change. Please check the below table for more clarification.

	Before 1st of July	1st of July onwards	The impact on customer invoice start from 1st of July
Existing Customer	Package + 5% Device Instalment + 5%	Package + 15% Device Instalment + 5%	New VAT 15% will be applied on the package Device instalment VAT will remain 5%
New Customer	-	Package + 15% Device Instalment + 15%	New VAT 15% should apply on device instalment and package

FAQs

Will VAT be applied when I purchase smart phones?

The new VAT 15% will be applied on all Smart Devices and accessories as instalment, starting from 1/7/2020, for the current customers who got the Device instalment before 1/7/2020, the VAT on the instalment fee will 5% without change. Please check the below table for more clarification.

If I have instalment plan currently is the new VAT will be applied on the instalment fee?

In case the customer got the device instalment before 1/7/2020, there will be no change on the instalment VAT until the end of the instalments period.

In case I want to close my commitment and pay the remaining amount of the device instalment, the new VAT 15% will be applied?

If the customer got the device instalment before 1/7/2020, the VAT will not be changed on the remaining amount of the device, and it will be the same 5%.

eSIM VAT Implementation

Will the VAT be applied when subscribing to eSIM?

Yes, the VAT will be applied on subscription to an eSIM.

Example:

Setup fee for eSIM is SR 50 without VAT After calculating the VAT will be 57.5