The law number 25 of the year 2018 stipulates in details the Excise Tax and the taxable persons or firms, who must register and file the tax return along with the penalties and tax assessment. Excise Tax is a new law, which came into force by the 1st of January 2019 oblige any taxable person or firm to file a quarterly tax return each 15 day that follows the taxable quarter. Excise Tax is a single-phased tax, levied once at import or at production stage within the state of Qatar.
The final consumers bear the excise tax; however, the tax is levied earlier throughout the supply chain business by the importers, manufacturers or tax warehouse keepers, which are required to register to submit periodical returns, pay the Excise Tax due to the General Tax Authority and maintain Excise Tax-specific records. There are certain conditions in which the chairman of General Tax Authority may exempt the importers from the excise tax, but this process is entirely related to his or her discretion.
Goods subject to Excise Tax in the State of Qatar and the applicable tax rates are as follows:
- Tobacco and tobacco derivatives – 100%;
- Carbonated drinks – 50%;
- Energy drinks – 100%;
- Special purpose goods– 100%.
Excise Tax is calculated as a percentage of the Excise Tax value of the goods. The Excise Tax value of the goods (i.e. the ‘tax base’) shall be the higher of:
- The standard price as listed in a Ministerial Decision, or a minimum value as listed in a schedule issued by the GTA on its website; or
- The retail sales price (RSP) declared by the producer or importer or warehouse keeper of such Excise goods after deducting any Excise Tax amount included in that price.
In order to deduct the Excise Tax included in the retail sales price (if any), the following should be applied:
- For Excise goods subject to 50% - multiply the RSP by 66.67%;
- For Excise goods subject to 100% - multiply the RSP by 50%.
To read more about the guide of Excise Tax; you can check the following linkhttp://www.customs.gov.qa/eng/EX_Tax.php
Antonio Ghaleb is accredited in Qatar and holding the auditor’s registration number 348. Also he is a member of the following institutions: a) American Institution of Certified Public Accountant (AICPA), b) Guam Board of Accountancy, c) Certified in Risk Management Assurance “CRMA”, d) Chartered Global Management Accountant designation “CGMA”, and e) International Financial Reporting Standards (IFRS).
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