Excise Tax

Excise Tax represents an investment in Qatar’s future by building a healthier society

Excise Tax is a consumption tax that is applied to specific goods that the State of Qatar deems harmful to human health and the environment.

Excise Tax revenues will be invested in improving public services including hospitals, infrastructure, and education. Excise Tax will contribute to the achievement of The State of Qatar’s social policy goals as part of the 2030 National Vision and help secure a sustainable future for The State of Qatar and its generations to come.

 

The following goods are subject to Excise Tax with the corresponding rates:

  • Tobacco products – 100% tax rate
  • Carbonated drinks (non-flavoured aerated water excluded) – 50% tax rate
  • Energy drinks – 100% tax rate
  • Special goods – 100% tax rate

Under certain conditions, persons can be exempted from excise tax duty. Please check the Taxable Person Guide for details.

 

How does Excise Tax work?

As a consumption tax, Excise Tax is ultimately borne by the final consumers, but collected earlier in the supply chain by taxable persons (importers, producers or tax warehouse keepers). Excise Tax is triggered once the excise goods are released for consumption. The below illustration demonstrates how Excise Tax works throughout a supply chain:

Click on the image to enlarge

Businesses liable to pay the Excise Tax or that want to operate a tax warehouse (if desired) will need to register for Excise Tax purposes, keep accounting books and records, file tax returns on a quarterly basis and pay the tax due.

Importers that are liable to pay the Excise Tax will also need to register for Excise Tax purposes. Importers must pay the Excise Tax due upon import to the General Authority of Customs (GAC), and they may qualify to be exempt from filing the tax returns.

We encourage you to view our FAQs section to have further details on the tax mechanism and gain a better understanding of the Excise Tax system.

The responsibility lies with the business to ensure fulfillment of compliance obligations. The GTA reserves the power to conduct assessments on taxable persons and may subsequently impose penal measures on those that are not compliant with the Law.

We encourage you to read the Excise Tax Law, the Executive Regulations, decrees, and decisions.

You will find more detailed instructions in the tax guides:

Guide #1: Taxable Person Guide