Phone bills, data packages and paid apps are going to start costing just a little bit more from next year…
This is because telecom services such as mobile phone, fixed line, data and payable digital services all fall under the tax ambit and will be subject to the 5 % VAT
After the implementation of VAT, talk-time and mobile credit for prepaid customers will be reduced.
So, say, you bought a SR100 prepaid voucher – SR 5 will be deducted as VAT and you will be left with a talk-time of SR 95 on you
For post-paid users, VAT is likely to be added to bills.
But it hasn’t been made clear yet whether VAT will be charged on an overall bill including subscription amount or only on call cost.
But it is not all awful – roaming charges within the GCC are still exempted from VAT
The Kingdom joins the club of nearly 160 nations by implementing VAT from January 1, 2018