Unlike value added tax, excise tax is a single-phased tax imposed at production or on import of excisable goods. Businesses subject to excise tax are obligated to register, collect excise tax, submit periodical returns and pay excise tax to the local authority. As of 1 January 2019, Qatar introduced excise tax on the following goods at the respective rates:
- Tobacco and its products – 100%
- Energy drinks – 100%
- Carbonated drinks – 50%
- Special purpose goods (consumed under specific conditions and authorizations) – 100%
In this respect, businesses should assess their excise tax obligations carefully to ensure they are fully compliant and manage their tax in the most efficient way possible.
KPMG Qatar is happy to assist you in relation to evaluating the potential impact of the excise tax and develop a road map as to the steps that must be taken to be ready for the excise tax in Qatar.
