Saudi Excise Tax: What’s New & What to Watch

Key Points:

• ZATCA’s Implementing Regulations for excise tax (Resolution No. 9‑1‑17, as amended) define all the updated rules for excise goods in the Kingdom.
• Goods subject to excise tax include: tobacco products, energy drinks, soft drinks, sweetened beverages, and electronic smoking devices.
• Tax base calculation: excise tax is calculated on the retail sales price for goods released for consumption, based on clear valuation rules.
• Tax stamps: Excise goods must carry authorized tax stamps, and there are strict rules for stamp purchase, deactivation, and invalidation.
• Refunds: There are provisions for tax refunds — including for overpaid tax, exports, and exempted goods.
• Enforcement & audits: ZATCA has broad audit powers, and there are clear enforcement mechanisms for non-compliance.
• Recent reminder: ZATCA urged excise taxpayers to file the May–June 2025 returns by 15 July 2025, warning of a 5% penalty per 30-day delay.
• Policy change in 2023: An amendment (Resolution No. 13‑1‑23) allows a payment postponement (up to 45 days) for excise tax, and introduces a refund mechanism for non‑consumable goods.

Summary

Saudi excise isn’t just about unhealthy products — the regulations are tighter, tax stamps are real, and ZATCA means business. Make sure your excise‑goods strategy is solid.

Disclaimer: The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk.   

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