Excise
Excise Tax
Excise tax on tobacco, energy drinks, sweetened beverages and other selective goods.
Excise tax is a selective tax on goods considered harmful to health or the environment. Saudi Arabia introduced it in June 2017 under the GCC framework agreement on excise tax, and it is administered by the Zakat, Tax and Customs Authority (ZATCA). The goods covered include tobacco products, energy drinks, soft drinks, sweetened beverages and electronic smoking devices and liquids, and each category has its own rate or method of calculation.
Unlike VAT, which is charged at every stage of the supply chain, excise tax is a single-stage tax. It becomes due when excise goods are released for consumption, for example when they are imported, produced in the Kingdom or taken out of a tax suspension arrangement, and the person responsible must register with ZATCA and file excise returns. Excise goods also carry VAT, charged on a value that includes the excise tax. The guides below cover the categories, the calculation and the main obligations.
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Excise Tax in Saudi Arabia: An Overview
Excise tax hits tobacco, energy drinks, and e-cigarettes at 100%, soft drinks at 50% — and sweetened beverages just moved to a new sugar-based rate structure.
The Sweetened Beverages Excise Tax Tiers in Saudi Arabia: A Practical Guide
Saudi Arabia's sweetened beverage excise tax now runs on sugar-content tiers, not a flat rate. How to calculate it per unit and classify products.
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