Excise Tax - Taxverse Solution

Excise Tax Registration.

Excise tax is a type of tax on specific goods that are deemed harmful to health or the environment. In Saudi Arabia, excise tax is levied on certain goods such as tobacco products, sugary drinks, and energy drinks. The current rate of excise tax in Saudi Arabia is 100% for tobacco products, 50% for energy drinks, and 50% for sugary drinks.

To register for excise tax in Saudi Arabia, the following steps must be followed:

Obtain a tax identification number (TIN): All businesses operating in Saudi Arabia are required to obtain a TIN from the Zakat, Tax and Customs Authority (ZATCA). The TIN is used to identify the business for tax purposes.
Register for excise tax: Once the TIN has been obtained, the business can register for excise tax through the ZATCA’s online portal. The registration process requires the submission of various documents, including the business’s commercial registration, tax identification number, and information about the business’s activities.
Obtain an excise tax license: After the registration process is complete, the ZATCA will issue an excise tax license to the business. This license allows the business to import, produce, or store excise goods in Saudi Arabia.
File excise tax returns: Businesses must file excise tax returns with the ZATCA on a regular basis. The frequency of the returns will depend on the volume of excise goods that the business deals with.

It is important for businesses to ensure that they comply with the excise tax regulations in Saudi Arabia to avoid penalties and fines. Businesses are advised to seek the advice of a qualified tax consultant or accountant to ensure that their excise tax obligations are met.

Excise Tax Compliance.

To comply with the excise tax regulations in Saudi Arabia, businesses must adhere to the following requirements:

Registration: Businesses must register for excise tax with the Zakat, Tax and Customs Authority (ZATCA) before engaging in the import, production, or storage of excise goods.
Calculation and payment: Businesses must correctly calculate the excise tax due on the excise goods they import, produce, or store, and pay the tax to the ZATCA on a timely basis.
Record keeping: Businesses must keep accurate records of all excise goods imported, produced, or stored, as well as any excise tax paid or collected.
Filing of excise tax returns: Businesses must file excise tax returns with the ZATCA on a regular basis, according to the frequency specified by the ZATCA.
Compliance with labeling and packaging requirements: Excise goods must be labeled and packaged in accordance with the requirements set by the ZATCA.
Compliance with anti-illicit trade measures: Businesses must comply with the anti-illicit trade measures set by the ZATCA to prevent the smuggling and illicit trade of excise goods.
Compliance with inspection and audit requirements: The ZATCA may conduct inspections and audits to ensure that businesses are complying with the excise tax regulations in Saudi Arabia. Businesses must cooperate with the ZATCA during these inspections and audits.