Excise Tax Crackdown: What’s New in Saudi Arabia 2025

In 2025, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) introduced updates to the Excise Tax Implementing Regulations to enhance compliance monitoring and digital reporting. The changes aim to tighten control over excisable goods such as tobacco, soft drinks, energy drinks, and electronic cigarettes.

Key Changes:

• Digital tracking expansion: All excise goods must now be registered and traceable under ZATCA’s Digital Excise System (DES).

• New penalties: Failure to register, file, or affix digital marks can result in higher fines and potential suspension of business activity.

• Record retention: Businesses must keep excise-related records for at least five years.

• Import verification: Customs clearance for excise goods now requires digital tax stamp validation before entry.
• Cross-border coordination: ZATCA has expanded information exchange with other GCC states to prevent double taxation and smuggling.

Summary

Saudi Arabia cracks down on Excise Tax violations — digital tracking, tighter audits, and heavier penalties are now mandatory in 2025.

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