HOW YOU WILL BE TAXED WHEN RECHARGING YOUR MOBILE PHONE

From Jan 1 2018 a 5% VAT will be applied every time you recharge your mobile phone according to telecommunications companies in the Kingdom.

Telecommunication companies such as Zain, Mobily and Stc will be implementing the VAT regulations on various services such as recharging prepaid voice and/or data lines, Subscription fees and invoices for postpaid voice and/or data packages as well as purchasing of devices.

This will for instance mean that for every 10 Sr you recharge to your prepaid line a VAT of 5% translating to 0.5 halalas will be charged while recharging 100 Sr will give you 95 Sr after tax reduction. 

Postpaid customer will also be charged 5%tax on their total bills which for example means that if your total bill is 200 Sr you will be billed 210 Sr.

Saudi Arabia will impose a 5% VAT on various goods and services with many companies in the kingdom registering with the General Authority of Zakat and Tax(GAZT) in readiness with the implementation of the new VAT regulations beginning 1st of January 2018.