A Tax Stamp is a unique marking in a form of a marking or code containing digital data affixed to the specified excise goods and electronically activated. Producers and importers of selective goods shall comply with the stamp and procedural rules to enable the importation and the sale of those selective goods in the Kingdom.
The application of the excise tax stamps system is in accordance with the GCC Unified Agreement for Excise Tax. You may access the Unified Agreement at this
link.
You can also read the Guidelines and Rules of Procedure for Tax Stamps at this
link.
Goods covered by the tax stamp system
The excise goods in the Kingdom required to bear stamps and referred to as the designated excise goods are the following:
- tobacco products
- Soft drinks
- Energy drinks
The Main Goals of the Tax Stamp System
- Enhance GAZT’s control and monitoring of taxing the imported excise goods.
- Enhance the ability to ensure legal entrance of designated excise goods into the Kingdom and collection of all due taxes and duties on these goods. Boost the ability of related authorities to review and analyze imported goods to identify illicit trade of designated excise goods, especially trade in tobacco products, to limit such illicit trade to the minimum extent possible.
- Comply with the provisions of the WHO Framework Convention on Tobacco Control to counter tobacco products consumption.
GAZT has begun its first step in the implementation of the tax stamps by introducing the system to cigarettes imported to the Kingdom as of May 31, 2019. GAZT will provide importers the ability to apply for tax stamps which target imported cigarettes from abroad.
As of 23 August 2019, the importation of cigarettes without proper and effective tax stamps will be banned.
As of November 18, 2019, the effective prohibition of the sale and circulation of cigarettes that do not have proper and effective tax stamps begins. And of Februray 18, 2020, any imported shisha products which do not carry tax stamps, will not be released. And as of May 18, 2020 selling or dealing with any shisha products will be prohibited inside the Kingdom of Saudi Arabia without these stamps.
GAZT will determine and announce timelines for application of tax stamps to cover all specified excise goods before the end of 2020.
