PREAMBLE
EXCISE GOODS
TAX DUE CALCULATION
TAXABLE CASES
Otherwise, the total damage or irreparable loss of excise goods is considered to have occurred for reasons beyond the control of the licensee. Production of excise goods or transfer, possession, storage or receipt of locally produced excise goods by the licensee. The following persons are obliged to pay the tax due: a) Importer of excise goods outside the tax deferral regime.
A person who possesses excise goods for commercial purposes not according to the Tax Suspension Agreement, with no. Subject to the fourth paragraph (4) of this article, the retail price for the remaining concentrations, powders, gels or extracts is calculated according to the criteria established by the Authority.
TAX STAMPS
At the request of the Authority or the Saudi Customs, the person liable for the payment of. Activated Tax Stamps must not be removed from the Designated Excise Goods, after which they 7. to Designated Excise Goods upon their entry into the Kingdom, in accordance with the procedure-. duration fixed by the Authority. This Article does not apply to Designated Excise Goods entering the Kingdom with arriving passengers as personal baggage for non-commercial purposes.
No one other than the authorized supplier may produce, supply, sell, exchange or trade tax stamps. The Authority will determine the purchase prices of tax stamps in consultation with the authorized suppliers. A registrant intending to release designated excise goods for consumption in the Kingdom must submit a purchase order for tax stamps.
The Authority will notify the applicant of its decision on whether or not to approve the request. Any person in possession of tax stamps from an authorized supplier must comply with the following obligations:. The possession of invalid tax stamps is prohibited, and they will be destroyed by the per-. by the person in possession of the Invalid Tax Stamps.
Purchase and payment of tax stamps;. d) Activation, deactivation, cancellation and damage of tax stamps; e) management and maintenance of records for the electronic tax stamp system; f) When tax stamps will be available for purchase and due dates (g) Licensing of authorized suppliers. In the case of importation of excise goods and their release for consumption, the amount of tax owed is calculated by the Saudi Customs on the basis of the tax base of these goods and in accordance with the 2nd information to the Saudi Customs:. Calculation of the amount of tax owed for each type of excise goods released for consumption;.
TAX ASSESSMENT AND DISCLOSURE
PAYMENT OF TAX DUE
Payment of tax due, which is reported in a tax return, must be made to the Agency no later than 2. Payment of tax due imposed by a tax assessment must be made to the Agency by 15. If the tax due is not paid on time, the Supervisory Authority, with a view to collecting the unpaid tax or any of the penalties imposed by law and its statutes seize the bank guarantees provided in accordance with the law and regulations.
The Authority will notify the person liable for payment of the Due Tax of any action he takes.
REGISTRATION APPLICATION FOR EXCISE TAX PURPOSES
The authority must notify the person liable for the tax due of any action it takes. one). The application form reference number which has been completed by the applicant and (b) Approval or rejection of the excise registration with clarification of the reasons for rejection. Registration is considered rejected if the authority has not made a decision before 3.
If any person required to register fails to submit an application for registration to the Authority in accordance with these Regulations, the Authority may register that person without registration. The registration takes effect from the date on which that person became liable for registration.
EXCISE REGISTRANT RESPONSIBILITIES
REGISTRATION AMENDMENTS
DEREGISTRATION PROCESS
GRANTING A TAX WAREHOUSE LICENSE
Excise goods can be stored and maintained only under the suspension of payment of excise duty in a warehouse that has permission to store these excise goods. The permit holder must be the owner of excise goods, except for excise goods that were produced in a tax warehouse on the order of another person.
TAX WAREHOUSE LICENSE
If there are excise goods in the Tax Warehouse on the date on which the withdrawal of the permit takes effect, the excise goods are deemed to have been released for consumption under the Tax Suspension Scheme. The Tax Warehouse Permit Holder who ships the excise goods is responsible for placing the excise goods under the excise duty suspension scheme. A movement of excise goods under a tax suspension arrangement must be covered by an excise movement document that allows the movement of the excise goods.
A physical copy of this document must accompany the excise goods at all times during transport. If the Authority approves the transport, it will issue the Excise Transport Document with a unique number printed on the document, enabling the transport of Excise Goods under the Duty Suspension Scheme. CHANGE OR CANCELLATION OF DOCUMENTATION ON SPOT GOODS AFTER IT IS ISSUED.
During the validity of the transport document of excise goods, but before it has been cleared, the transport document can be changed. If the destination on the transport document of the excise goods is another tax warehouse, the recipient excise warehouse permit holder must submit an unloading report to the authority after unloading the excise goods at the destination. If the destination of the transport document for excise goods is export, the holder of the permit must submit proof of export to the sending authority.
A transport document for excise goods is considered cleared in one of the following two cases: a). The deduction of the tax due is carried out by calculating the excise duty for the warehouse in which the excise goods were used as material in the production process. Deducted tax is the amount of tax that has been paid on excise goods used as raw materials in the production process covered by the excise tax return.
The request for refund of the tax paid on the tax liability - according to this article - will be considered by the Authority only if it is submitted within ninety (90) days after the payment of the tax for the excise goods that have been released. for consumption. The request for refund that is submitted by the person included in this article will be considered by the Authority only if it is submitted within ninety (90) days after the payment of the tax for the excise goods that have been released for consumption.
PLACING THE EXCISE GOODS UNDER A TAX SUSPENSION ARRANGEMENT
EXEMPTIONS, REFUNDS AND DEDUCTIONS OF EXCISE TAX
Excise goods imported into the Kingdom with arriving passengers as personal baggage are exempt from tax if such excise goods are exempt from customs duties under the Common Customs Duty for Council States. Without prejudice to other laws applicable in the Kingdom, the tax shall become chargeable on the entire quantity of excise goods when such quantity exceeds the limit established for exemption under clause (1) of this Article. The excise goods sold to consumers from a duty-free shop licensed as a Tax Warehouse must be parted within twenty-four (24) hours from the time of sale.
This tax exemption will only apply upon importation or upon submission of the excise declaration. The request for tax refund shall be submitted either with the excise declaration, or with any other form determined by the Authority. The tax refund will be given by the Authority for the tax paid on the amount of the tax liability.
Refunds of tax can only be applied for and must only be granted by the authority to excise registrants who have paid the excess tax. Refunds of duty are granted by the tax authority paid for excise goods which are exported or transported outside the kingdom. An application for refund of duty paid on goods transported or exported outside the Kingdom – under this Article – shall only be considered by the Authority if submitted within ninety (90) days of the date on which the excisable goods are released for consumption in the Kingdom has been exported or transported outside the territory of the Kingdom.
The Tax Refund will be granted by the Tax Authority that has been paid for Excise Goods that could have been released for consumption if the consumer has the right to exemption, according to the law in force. The Authority verifies the refund request and may reject it in the following cases: The Authority will notify the tax refund applicant if any such action is taken.
ENFORCEMENT OF THE LAW
The relevant department at the Authority may, for just one time, extend the period prescribed in the second (2) paragraph of this Article to another similar period. The Authority may offset any credit balance due to the Tax Refund Applicant against any other amount pending resolution of any outstanding assessments raised against the Tax Refund Applicant. Where the addressee does not have a clear or known address, the Authority may decide on any method it deems appropriate to send the notices.
If a prescribed period expires on a non-working day, the prescribed period will be extended until the next working day. Authority, which contributes to detecting violations of law and regulations leading to Saudi Riyals, whichever is lower.
QUOTA ORDERS
TRANSITIONAL PROVISIONS
Any person producing excisable goods from the date the Act comes into force is subject to Article sixty (60) of the Regulations, if such person applies for the Tax Warehouse permit, which ends when the application is rejected.
FINAL PROVISIONS
