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Finance & Tax

Excise Tax Calculator

Calculate Saudi excise tax on tobacco and energy drinks

Excise Tax Calculator
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Original price before any tax.

Include VAT

The retail price the consumer pays usually includes 15%.

Excise tax

100SAR

100%

VAT amount

30SAR

Final price

230SAR

How does it work?

Excise tax is an indirect tax on specific products judged harmful to health or the environment, designed to discourage consumption and fund public health services. Rates range from 50% to 100% by category.

Saudi excise rates

Tobacco and its derivatives 100%, e-cigarettes and their liquids 100%, energy drinks 100%, soft drinks 50%, sweetened drinks 50%.

Formula

Excise tax is computed on the pre-tax price, then 15% VAT is layered on the excise-inclusive price.

Excise = Price × Rate | VAT = (Price + Excise) × 15% | Final = Price + Excise + VAT

Worked example

A pack of cigarettes priced at 10 SAR before tax:

  1. Excise = 10 × 100% = 10 SAR
  2. Post-excise price = 10 + 10 = 20 SAR
  3. VAT = 20 × 15% = 3 SAR
  4. Final retail price = 20 + 3 = 23 SAR

Importer and manufacturer obligations

  • Register in the excise system before any import.
  • Affix tax stamps to tobacco packaging.
  • File monthly returns on quantities and sales.
  • Retain stock records for 5 years.
  • Apply mandatory pricing per ZATCA-approved schedules.

Frequently Asked Questions

Who pays excise tax?

The importer or manufacturer pays the authority, then passes it through to the consumer in the final retail price.

Different from VAT?

Yes. Excise is on specific harmful items (tobacco, sugary drinks) and computed first. VAT 15% is then added on the post-excise price.

Is mineral water subject to excise?

No — only soft drinks, energy drinks, and sweetened drinks. Plain water is exempt.

What counts as a sweetened drink?

Any drink with added sugar or artificial sweeteners ready for direct consumption, excluding milk and natural fruit juices that are at least 75% juice.

Can businesses recover excise?

Only in narrow cases (re-export, damage before sale). The default is that excise is a final tax on the consumer.

When is VAT applied on the final price?

Right after the excise tax. The 15% VAT is computed on (price + excise), not on the original price alone.

When you run the same sum every day

Invoicing every day? In Snad each invoice posts its entry and updates your stock automatically.

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  • Accounting, inventory and ZATCA e-invoicing in the same software
  • Tax and balances are computed from your own transactions, so no figure moves to a separate spreadsheet