Excise Tax: It is a tax levied on goods having adverse impact on public health or environment or on luxury goods in varying proportions, which include soft drinks, energy drinks and tobacco and its derivatives.
Excise Tax shall apply to (producers - exporters – holders of excise products under a tax suspension position and holders of excise goods in a transitional phase).
- Producers: In this phase, producers shall submit a tax return each two months for the financial year so that the year is divided into six tax periods, for goods released for consumption from the production date. Producers shall pay the due tax for such products within 15 days from submitting the return.
- Exporters: In this phase, exporters shall pay excise goods tax for each customs declaration at Saudi Customs. At the end of the (two-month) period, GAZT shall validate the tax calculated for the customs declarations for this period and demand exporters to pay differences, if any.
Application of Excise Tax in KSA shall be in accordance with GCC Unilateral Agreement for Excise Tax, published on Friday, 30 Sha'ban, corresponding to 26 may 2017.
You can access the Agreement by pressing here.
Excise Goods Tax Law:
This Law outlines the mechanism to be followed to levy Excise Goods Tax as described in the GCC Unilateral Agreement for Excise Tax. The final draft of Excise Goods Tax Law was officially adopted and published in Um Al-Qura Newspaper.
o access Excise Goods Tax Law, please press here.
Implementing Regulations of Excise Goods Tax Law:
The Implementing Regulations of Excise Goods Tax Law include the fields stated in the KSA Law, where the implementation rules are detailed. You can access the Implementing Regulations of Excise Goods Tax Law by pressing here.