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​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 1/1/2018after 1/1/2018
Administrative FeesNot Applicable5% 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. ​

Illustrative Example:​

Loan amount​​ Admin feesVAT Total due amount (Admin fees + VAT )
SAR 100,000SAR 1,0001,000 * 5% = SAR 501,000 + 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.