Transitional period for excise tax in the State of Qatar
To our valued clients
What is Excise Tax?
Excise Tax is an indirect tax that is imposed on a limited range of goods. These goods include products deemed harmful to the human health or the environment. It is a single-phased tax, levied once at import or at production stage within the country.
As issued under Law No (25) of 2018 and implemented on 1 January 2019, the Excise Tax is imposed on the following goods:
Products | Tax % |
|---|---|
Tobacco products | 100% |
Energy drinks | 100% |
Special goods | 100% |
Carbonated drinks (non-flavored aerated water excluded) | 50% |
Compliance & Filing
As per the instructions of the General Tax Authority (“GTA”), a transitional phase of 30 days after the Law comes into force in which a one- time transitional Excise Tax return must be filled not later than 31 January 2018 by all and any businesses that hold Excise Goods for business purposes. Such as hotels, restaurants, convenience stores, tobacco shops, hospitality and catering related business, etc.
Businesses where the inventory in respect of the Excise Goods exceeding 50,000 QAR must present along with the tax return a certificate by an accredited auditor in the State of Qatar confirming the validity of the inventory.
Non-compliance with GTA
The GTA reserves the power to conduct assessments on taxable persons and may subsequently impose a very strict penal measures, imprisonment or/and financial fine.
Such as, and not limited to, a daily QR 500 up to QR 180,000 for delay in submission of return and 2% of the tax amount due per month up to the tax amount due for delay in payment of tax.
How We Can Help You?
With a big team of professionals and experts, we can help you with preparing for the transitional period for Excise Tax from a consultancy and compliance perspective:
- Check Count of goods subject to tax
- Issue a certificate where goods are more than QR 50,000
- Review and submit the tax return form
If you require any further information or assistance in regards to the Transitional Period for Excise Tax, please don’t hesitate to contact us on the following: