QATAR  ·  EXCISE TAX  ·  2026

Qatar’s new excise tax on sweetened drinks: what businesses must know before 6 July 2026

01.The shift — from flat rate to tiered volume model

Under Law No. (25) of 2018, carbonated drinks were taxed at a flat 50% of retail sale price regardless of sugar content. Law No. (2) of 2026 replaces this with a tiered volume-based model. Tax liability is now calculated on the actual quantity of sugar or sweeteners present in the product — meaning sugar content directly determines the tax burden per unit volume. A product reformulated with lower sugar content moves into a lower tax tier and benefits from a reduced liability.

The specific tiered rate thresholds for sweetened drinks under the new model — including the sugar content cutoffs and corresponding QAR-per-litre rates — will be set by a forthcoming Cabinet Decision. This instrument is expected before 6 July 2026 and should be monitored on the Dhareeba Tax Portal.

02.Expanded scope of taxable goods

The updated schedule of excise goods now covers two distinct categories.

The inclusion of concentrates and powders is an explicit anti-avoidance measure. Tax now applies at the earliest point in the supply chain where sugar content is determinable, closing the gap that previously allowed pre-drink imports to fall outside the excise schedule.

03.Who is liable?

Persons liable to pay excise tax include producers of excise goods outside suspended tax status, possessors of excise goods on which tax has not been paid, licensees upon release from a tax warehouse, importers of excise goods, and any other person who releases excise goods for consumption. Where multiple persons simultaneously meet the liability conditions, they are jointly and severally responsible for the due tax.

04.Compliance requirements

Registration

Any person engaged in the production or importation of excise goods, or licensed to operate a tax warehouse, must apply for tax registration with the General Tax Authority. Entities already engaged in such activities as of the effective date must submit a registration application within 90 days of 6 July 2026 — by approximately 4 October 2026.

Stock declaration — the critical obligation

Any person holding excise goods at the time the law takes effect on 6 July 2026 must submit a tax declaration disclosing stock levels as of the day before the effective date through the Dhareeba Tax Portal. The tax on declared stock is due upon submission. Payment must be made within 30 days from the due date. Businesses must complete a comprehensive stock count and valuation before 6 July 2026.

Periodic tax return filing

Registered persons must submit a tax return for each tax period and pay the due tax within 15 days after the end of the tax period. Overpaid amounts may be reclaimed subject to the statute of limitations and procedures in the Executive Regulations.

Record-keeping

Every person liable for excise tax must maintain accurate, independent records of the movement of excise goods, retain all supporting documents to verify tax calculations and payments, comply with distinctive marking requirements as directed by the Minister, and retain records for the periods specified in the Executive Regulations.

Tax warehouse licensing

Businesses wishing to produce, transform, store, or receive sweetened drink products — including concentrates and powders — under suspended tax status must obtain a tax warehouse licence from the GTA. Places where concentrates, powders, gels, and extracts are directly transformed into final excise goods for consumer sale are explicitly ineligible for a warehouse licence.

05.Implementation timeline

06.Penalties and enforcement

Violation of taxpayer confidentiality provisions carries a penalty of imprisonment for up to six months and/or a fine of up to QAR 50,000.

07.Governing legal instruments