Value Added Tax
We would like to bring to your attention that (i) the Unified Agreement of Value Added Tax for the Cooperation Council for the Arab States of Gulf Cooperation was ratified by the Royal Decree No. (M/51) dated 03/05/1438H (the "VAT Agreement"); (ii) the Value Added Tax Law was issued by the Royal Decree No. (M/113) dated 2/11/1438H ("VAT Law"); and (iii) the Implementing Regulation of the Value Added Tax Law was issued by decision No. 3839 dated 14/12/1438H ("VAT Implementing Regulation") of the Governor of General Authority of Zakat and Tax.
As per Article (25) of the VAT Agreement, Article (53) of the VAT Law, Article (29) of the VAT Implementing Regulation, Clauses (2) & (9) of the Terms and Conditions of the Bank under Samba Credit Card Agreement, and Clause (13) of the Terms and Conditions of the Card Holder under Samba Credit Card Agreement, we would like to note that starting from 14/04/1439H in correspondence with 01/01/2018 a value added tax ("VAT") of 5% shall be (a) charged at the applicable rate in relation to the fees and charges that are mentioned in the "Initial Disclosure" of our Terms and Conditions for Samba Credit Card agreement and (b) deducted from the Card Account. The fees and charges subject to VAT are:
- ANNUAL PRIMARY MEMBERSHIP FEE
- ANNUAL SUPPLEMENTARY/LCC FEE
- CASH ADVANCE FEE
- REPLACEMENT CARD FEE
- DIAL A DRAFT ISSUANCE FEE
- DISPUTED TRANSACTION FEE
You may terminate the Agreement of Samba Credit Card within 14 calendar days after the issuance or renewal of the card by advising us through authenticated communications. You will continue to be liable for amounts that you owe to us until we receive your full payment.