As per Royal Decree No. M/113 dated 2/4/1438H regarding imposing value added tax (VAT) on some finance services provided to customers as of 1st January 2018, the VAT will be imposed at 5% to all AlAhli personal finance customers, as follows:
|Description of Fees||before 1/1/2018||after 1/1/2018|
|Administrative Fees||Not Applicable||5% of Administrative Fees|
Note: If the application not completed (approved) before 1/1/2018 for whatever reason, the VAT shall be applicable on administrative fees.
|Loan amount ||Admin fees||VAT ||Total due amount (Admin fees + VAT )|
|SAR 100,000||SAR 1,000||1,000 * 5% = SAR 50||1,000 + 50 = SAR 1,050|
Note: The VAT amount shall vary according to Administrative Fees.
Calculation of VAT:
The VAT will be due once the application gets approved.
Frequently Asked Questions:
Will the Bank impose extra charges in addition to the VAT?
No extra charges will be added, except the VAT.
VAT amount varies from month to another?
No , the VAT is payable for one time once the application get approved.
Will the customer pay VAT if he applied for Top-up or additional loan?
Yes. VAT is calculated when applying for Top-up or additional loan depending on the administrative fees amount for that loan.