SAUDI EXPATRIATES

Under the new tiered volumetric system, the tax rate will depend on how much sugar is in the drink. The amount of tax will be based on specific sugar-level ranges per 100 milliliters of ready-to-drink beverages. This new model replaces the current flat-rate system, which now charges a fixed 50% tax on the retail price of all sweetened drinks covered by the tax. Read: Saudi Arabia bans Tobacco shops near Mosques and Schools

To make this change happen, the Zakat, Tax and Customs Authority (ZATCA) has posted suggested updates to the rules for the Excise Goods Tax Law on the Public Consultation Platform “Istitlaa.” These amendments describe how the transition to the new sugar-based model will work. The ZATCA Board of Directors has approved opening the consultation, and the public can send feedback and suggestions until October 23.

Sweetened beverages are defined as any drink containing added sugars, artificial sweeteners, or other sweetening ingredients. The excise tax covers all types of beverages, including ready-to-drink products, concentrates, powders, gels, extracts, or any other forms that can be mixed into a beverage.

The GCC’s decision to change the calculation method applies to all member states, with Saudi Arabia implementing it first in 2026, after completing all legislative and regulatory procedures and publishing full details.

ZATCA explains that they are making this early announcement to allow importers and manufacturers ample time to prepare for the change. The authority will also conduct awareness workshops with pertinent organizations to elucidate the technical aspects of the new system and guarantee a seamless transition. See Also: Saudi Arabia issues new bank account rules for expats and visitors