GTA prohibits producing, releasing, or importing certain goods subject to excise tax without placement of distinctive marks

The Minister of Finance issued Decision No. 2 of 2022 regarding placing distinctive marks on excise goods, such Decision being published in Official Gazette No. 3 of 2022 dated 19 April 2022. The Decision is issued under the auspices of the Excise Tax Law no. 25 of 2018.

What obligations are imposed?

Based on the Decision, distinctive marks to be provided by certain suppliers licensed by the General Tax Authority (GTA) must be placed on good subject to excise tax prior to releasing the goods for consumption in circumstances covered by paragraphs 1, 2, and 4 of Article (3) of the Excise Tax Law, being the following: 

1- Producing goods subject to excise tax outside the scope of a tax suspension arrangement; 

2- Releasing goods subject to excise tax from any tax suspension arrangement; and 

3- Importation of good subject to excise tax, unless being under a tax suspension arrangement.

The obligation of placing the distinctive marks is on the producer of the products whether produced inside or outside Qatar. However, in special circumstances placing the distinctive mark may be done by a licensee at the licensed tax warehouse.

The form of the distinctive marks is yet to be revealed, as the marks will be supplied by a supplier certified by the GTA. 

Violating the provisions of this decision, by removing or not placing the marks is punishable in accordance with the Excise Tax Law by a financial penalty of ten thousand Qatari Riyals. However, if such act is considered tax evasion the punishments would be imprisonment for a period not exceeding one year and/or a fine not exceeding three-fold the tax due. 

What exemptions apply? 

The Decision confirmed the exemptions already in place pursuant to Article 13 of the Excise Tax Law, mainly being goods held by travellers coming to the State that do not have a commercial nature.  Goods for diplomatic and international organisations are also exempt.  In addition, the Decision adds an exemption for goods imported via express or normal Post for personal usage and goods imported by the Military authorities as part of an agreement with Qatar.

When this Decision will come into force?

The Decision came into force on 20 April 2022. 

However, Article 13 of the Decision provides that the Decision will be put into place through three phases as per the below table. The commencement date of each phase will be announced on the GTA’s website, or by any other means.

How can we help you?

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