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THE REGULATION:

Following products are classified as sweetened drink for the purposes of the excise tax that is currently implemented in GCC. 

A product to which a source of sugar or other sweetener is added that is produced in any of the following forms:

  • A ready-to-drink beverage intended to be used as a drink,
  • Concentrates, powders, gel, extracts or any form that can be converted into a sweetened drink.

Sugar includes any type of sugar determined under Standard no. 148 of the GCC Standardization Organization under the heading “Sugar” and any subsequent and relevant standards.

Sweeteners include any type of sweeteners determined under Standard no. 995 of the GCC Standardization Organization under the heading “Sweeteners Permitted in Food” and any subsequent and relevant standards.

TAX RATE: 

50% on the retail price

AFFECTED COUNTRIES:

  • Kingdom of Saudi Arabia
  • United Arab Emirates
  • Sultanate of Oman

THE EXEMPTION:

Following products are excluded from the definition of sweetened drinks:

  • Ready-to-drink beverages containing at least 75% milk
  • Ready-to-drink beverages containing at least 75% Milk Substitutes
  • Baby formula, follow up formula or baby food
  • Food for special dietary use
  • Food for special medical purpose

AVOID THE TAX:

If your product does not fall under the criteria of sweetened beverage as mentioned above or has been wrongly classified under sweetened beverage, we can help in classifying the product accordingly so as to avoid the tax and get the necessary approvals.

Even if the product is exempted as per the above exemption list, approvals will still be required to the get the exemption. We can help you in getting those approvals.

Please contact us at enquiries@gulftrade.co.uk to know more on how to avoid getting taxed and staying competitive in the market.