The scope of Excisable goods has expanded across the Kingdom

New compliance obligations

The scope of Excise Tax in The Kingdom of Saudi Arabia (KSA) has expanded and the changes will be implemented with effect from 1 December 2019. Is your business ready to go live?

These amendments to the KSA Excise Tax regulations have increased the scope to include the following Excise goods categories:

  • Sweetened drinks;
  • E-cigarettes; and
  • E-cigarettes’ liquids.

If not already registered for Excise Tax, businesses which import, manufacture, or stockpile the above goods in KSA will need to register for Excise Tax before 1 December 2019. 

If already registered for Excise Tax in KSA, businesses will need to determine whether their products, such as sweetened drinks, fall within the definitions of the revised scope – even where no ongoing obligation to register for Excise Tax exists, some businesses with existing stock of these products may be required to file a one-off return following the 1 December implementation date. 

It is crucial that businesses associated with Excisable goods in KSA understand the new compliance obligations. Procedures should be assessed, and where necessary redesigned to support the accuracy of the reporting requirements and Excise Tax filing.

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