General Tax Authority of Qatar introduces tiered volume model for excise tax calculation on sweetened drinks amongst other updates

9 April 2026 –  As part of its continuous efforts to enhance the implementation of excise tax and align with global practices, the General Tax Authority (GTA) has officially published Law No. (2) of 2026 (“Law”) amending certain provisions of Law No. (25) of 2018 concerning excise tax. This amendment establishes a tiered volume model for calculating excise tax on sweetened beverages. Specifically, the tax will be determined by the volume of sugar or sweeteners contained in the beverage. The Law will take effect on 6 July 2026.

Key highlights related to the ‘Sweetened Drinks’

• Scope and Coverage: Excise tax is intended to be imposed on products produced and imported into Qatar that contain (natural and added) sugar or sweeteners. The tax may apply to various products, including soft drinks, juices, as well as beverages, concentrates, powders, extracts, or any other product that can be converted into a sweetened beverage.
• Excise Tax Rate: As per the Schedule of Excise Goods No. (2) attached to the Law, sweetened beverages shall be subject to excise tax based on total sugar and sweetener content as tabulated below:

• Transitional Provisions: The following transitional conditions apply to persons possessing excise goods for commercial purposes outside a tax suspension arrangement on the Law’s effective date:
  • Submit an audited statement to the GTA within 90 days, detailing the balance of excise goods in possession as of the Law’s effective date.
  • The tax due on the balance stock of goods must be paid, or a refund claimed, within 30 days from the date of statement submission.
• Allocation for Health Awareness: 1% of excise tax revenue from sweetened beverages shall be allocated to the Ministry of Public Health for health awareness.

Other highlights

• Statute of Limitation for Offences as per Article 18 of the Excise Tax Law No. (25) of 2018: Article 18 specifies scenarios that may lead to ‘tax evasion’. It has been clarified that the statute of limitation of five (5) years from the end of the year in which the tax becomes due shall apply in all such cases of tax evasion.
• Article 26 (Para 2) on Statute of Limitations: The Law includes provisions impacting the statute of limitations related to the assessment, collection, and refund of taxes and financial penalties. As per the amendments, actions such as requests for information, data, and notifications sent by the Authority to the taxpayer, as well as any correspondence issued by the taxpayer containing an acknowledgment of tax debt, now interrupt the statute of limitations.

Recommendations for businesses

1. Amendment of Current Excise Tax Registration / Application for New Registration: Producers and importers of sweetened beverages should assess whether their operations qualify them as taxable persons. Once the impact is evaluated, taxpayers should apply for excise tax registration or amend their current excise tax registration status to reflect the new category of products subject to excise tax.
2. Product Registration: Taxable persons should identify the products falling under the expanded scope and register them in the Dhareeba Portal.
3. System and Other Related Changes: Taxable persons should update existing ERP systems to ensure the necessary steps are taken to categorize products covered within the scope extension. The material master for the products needs to be changed from non-excisable to excisable, the price master updated to include the excise tax amount (ERP should be configured to calculate excise tax for products based on the various slabs as per the Law), and accounting entries generated by the ERP need to be suitably configured to include the excise tax charged to customers upon release of the products.
4. Transitional Compliance: Ensure to obtain the audited statement of stock balance, prepare to submit tax declarations disclosing stock levels, and make excise tax payments or claim refunds within the timelines provided.
5. Impact on Pricing: Taxable persons must determine the impact on pricing of relevant products, including soft drinks, juices, beverages, concentrates, powders, extracts, or any other product that can be converted into a sweetened beverage, as excise tax is based on the sugar content of each product. Competitive pricing is key to sustainability in the market.
6. Training: Ensure teams are trained and familiar with the new excise tax requirements and compliance obligations.

How Deloitte can help

Deloitte has extensive experience in Qatar and across the GCC in providing a range of excise tax-related services, including:

• Assistance with the classification of goods from an excise tax perspective
• Obtaining clarifications from tax authorities, if required
• Conducting excise ‘health checks’
• Managing excise tax registrations
• Handling product registrations
• Facilitating warehouse keeper registrations
• Reviewing Retail Selling Price calculations
• Preparing governance manuals
• Implementing tax technology solutions, including integrating excise tax into ERP systems