Value Added Tax (VAT)

Value Added Tax (or VAT) is an indirect tax imposed on all goods and services that are bought and sold by businesses, with a few exceptions. VAT is applied in more than 160 countries around the world as a reliable source of revenue for state budgets. VAT is imposed at each stage of the supply chain from the production and distribution to the final sale of the good or service. Saudi Arabia is committed to impose VAT with effect from January 1, 2018 (Rabi Al-Thani 14, 1439). VAT will be introduced at a standard rate of 5%.

Features:

Sharia Complaint Financing
Competitive Annual Percentage Rate
Ability to finance the advance payment
Ability to delay the finance principle and deduct part of the monthly installment (profits only) during the construction period up to a maximum of 24 months
Step up financing solution on various products.
Military support feature for the advance payment is up to SR 140,000 according to the admission criteria of the program
Civil support for advance payments of up to SR 140,000 (age 50 and over) according to the admission criteria of the program
Calculate the amount of residential support as part of the customer's income
Annual Percentage Rate starts from 5.82% for Ijarah products
Management fees equal to 1% of finance amount or SAR 5,000 whichever is less