VAT Increase FAQ
On 21 February 2018, it was announced that for the first time in 25 years South Africa will see a Value Added Tax rate increase. As legislated the rate will increase from 14% to 15%, effective the 1 April 2018. Cell C products and services are subject to VAT and as such our prices will be adjusted accordingly.
- If you are on Prepaid then the rates on your tariff plan will increase effective 1 April 2018
- If you are on Contract then your monthly subscription fees and rates as per your plan will increase effective 1 April 2018
- Contract includes Postpaid and Top Up (hybrid) and Voice and Data plans
All Cell C customers across Prepaid and Contract will be impacted.
Changes will be made to:
- Monthly subscription fees for Contract plans
- Out-of-bundle rates for all Voice, Data, SMS (including International SMS), MMS and International calling and roaming across Contract and Prepaid
- Value Added Services subscription fees
As a Cell C Prepaid customer the rates on your selected Prepaid tariff plan will increase by 1% (this is sometimes called out-of-bundle charges). This includes the rates you pay for; Voice calls, Data, SMS (including International SMS), MMS and International calling.
If you are a Cell C Contract Customer (Postpaid/Top Up) then the pricing of your Contract subscription; and out-of-bundle rates for Voice, Data, SMS, MMS and International calling will be impacted by the VAT increase with effect from 1 April 2018, but will reflect in your bill as of 1 May 2018.
If you are a Data Contract customer the pricing of your Data Contract subscription and out-of-bundle rates will be impacted by the VAT increase with effect from 1 April 2018.
The pricing of your Contract subscription, bundle services and out-of-bundle rates for Voice, Data, SMS, MMS and International calling will be impacted by the VAT increase with effect from 1 April 2018.
As a Contract Customer your subscription will be adjusted in accordance with the VAT increase effective 1 April 2018. All bundle services and out-of-bundle rates for Voice, Data, SMS, MMS and International calling on your Contract subscription will also be impacted by the VAT increase effective 1 April 2018.
There will be no increase on the pricing of:
- Once-off and recurring bundles across:
- AlwaysOn Wi-Fi and
- Airtime (Rand Value recharges)
If you subscribe to Premium Rated Services like content, then there is no change to the subscription rate of the content service/s.
If you subscribe to C Surance, there will be no change to your monthly premium.
If you subscribe to GetMore and/or MiAssist, then your monthly subscription will be impacted by the VAT increase effective 1 April 2018.
If you use Cell C International Calling and International Roaming then all your rates will be adjusted and increased according to the new VAT rate effective 1 April 2018.
The Cell C C-Fibre products and services tariff price will be adjusted accordingly, as these services are subject to VAT. This means that billable services (your C-Fibre contract subscription; C-Fibre Connector Mobile out-of-bundle rates on mobile voice, data, SMS and MMS; and C-Fibre Connector Mobile Top-up bundles) will all be impacted by the VAT increase. Customers that will be affected by the change include customers on Vumatel, Vumatel Aerial, Openserve, FrogFoot, Octotel, Metrofibre and Waterfall Access Network. Customers that were part of the acquisition base from iConnect and Greencom will also be affected by a VAT increase to 15% on their existing subscriptions. Existing C-Fibre customers will be affected by a VAT rate increase to 15% on the monthly pro-rata clawback on the value of the Wi-Fi router where applicable.
In an attempt to offer existing C-Fibre customers some financial relief, Cell C will absorb the VAT rate increase for the month of April and will only increase its C-Fibre rates on 1 May 2018. The financial relief from the VAT rate increase for the month of April will however not apply to new customers that sign up for C-Fibre in the month of April. The VAT rate increase will therefore be effective 1 April 2018 for new C-Fibre customers that signup for the service.
You can logon on to the Cell C website, click on "plans" and get more information on your tariff plan.
The Bill Limit is the safeguard Cell C provides their customers to manage their maximum expenditure which can be incurred on the line and incudes all costs associated with the contract including the monthly subscription and hardware costs.
The increase in the VAT rate has resulted in a decrease of the allowed benefits and Cell C moved your limits up by this 1% to ensure uninterrupted customer service within the agreement entered into between you and Cell C.
Subscribers are offered the opportunity to change their Bill Limits on the Cell C application by accessing the drop down menu on the left hand side next to the wording "Dash Board" under "Services", and then "Bill Limit". Alternatively you can contact the call center on 084140 to have the limits amended based on your needs.