ZATCA Excise Tax Β· Tobacco, Energy & Carbonated Drinks Β· All Rates

Excise Tax Saudi Arabia

Complete excise tax registration, compliance, and return filing for businesses manufacturing, importing, or dealing in excisable goods in Saudi Arabia.

Excise tax compliance Saudi Arabia
ZATCA Excise Tax
Saudi Arabia's Excise Tax applies to specific categories of goods deemed harmful to public health or the environment. Introduced in June 2017, excise tax is levied on tobacco products, energy drinks, carbonated drinks, and sweetened beverages at rates ranging from 50% to 100%. The tax applies at the point of manufacture within Saudi Arabia or at the point of importation.

Businesses that manufacture, import, release from a designated zone, or hold stock of excisable goods must register for excise tax with ZATCA. Intelli Solutions provides complete excise tax registration, return preparation, inventory reconciliation, and ZATCA compliance management for affected businesses across Saudi Arabia.

Excise Tax Rates in Saudi Arabia

Product Category Excise Rate Applies To
Tobacco and tobacco products100%Cigarettes, cigars, shisha, e-cigarettes
Energy drinks100%Drinks stimulating mental or physical activity
Carbonated drinks (sweetened)50%Fizzy drinks with added sugar/sweetener (excl. water)
Sweetened beverages50%Non-carbonated drinks with added sugar/sweetener (2022+)
Electronic smoking devices / e-liquids100%Devices and liquids used in e-cigarettes and vaping

Excise tax is calculated on the retail selling price or the CIF import value, depending on the transaction. Detailed valuation rules apply for each product category.

By the numbers

Excise Tax Saudi Arabia β€” Key Facts

100%
Tobacco & energy drink rate
50%
Carbonated drink rate
2017
Excise tax introduced
Monthly
ZATCA return frequency
FAQ

Frequently Asked Questions β€” Excise Tax Saudi Arabia

Any business that manufactures excisable goods in Saudi Arabia, imports excisable goods into Saudi Arabia, releases excisable goods from a designated zone or warehouse, or holds excisable goods at the time of introduction of the excise regime must register with ZATCA for excise tax. Retailers who purchase already-taxed goods do not need to register β€” the tax is borne by the manufacturer/importer.
Yes. Excise tax and VAT are separate obligations and both apply to excisable goods. Excise tax is levied first at the manufacturing/import stage. VAT at 15% then applies to the total selling price including the excise tax component. This creates effective tax rates well above 15% for consumers of excisable products.
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Does Your Business Deal in Excisable Goods?

Our excise tax specialists handle ZATCA registration, return filing, and compliance for all excisable product categories. Free assessment.

SOCPA Approved ZATCA Certified Free Consultation Est. 2010