The General Tax Authority (GTA) has enacted Law No. (2) of 2026, amending Law No. (25) of 2018 and introducing a tiered volumetric model that calculates Qatar excise tax based on the sugar or sweetener content of beverages.
This law takes effect on 6 July 2026 and will directly impact producers, importers, distributors, wholesalers and commercial stockholders holding sweetened beverages for sale. The transitional obligations are immediate and time sensitive, leaving little room for delay. Businesses should act now to avoid missing critical deadlines.
What changed under Qatar's new sugar tax law
- Excise tax now applies to all beverages containing natural or added sugars or sweeteners, including soft drinks, juices, concentrates, powders and extracts.
- Carbonated drinks will no longer be treated as a separate category; they fall under the new sweetened drink classification.
- Tax rates are tiered by sugar content per 100ml:
| Sugar/sweetener content | Tax rate (QAR/litre) |
|---|---|
| Less than 5g/100ml | Nil |
| 5g–7.99g/100ml | QAR 0.77 |
| 8g/100ml or more | QAR 1.06 |
| Artificial sweeteners only | Nil |
Additionally, 1% of excise tax revenue will be allocated to the Ministry of Public Health for awareness initiatives.
Who must register for excise tax in Qatar
Any entity engaged in importing, producing or warehousing sweetened drinks in Qatar must register for excise tax. Transitional provisions also extend obligations to distributors, wholesalers and stockholders who may not have previously been subject to excise tax.
There is no registration threshold — all businesses involved must comply.
Transitional rules: stock held before 6 July 2026
If you hold sweetened beverages commercially outside a tax suspension arrangement on 6 July 2026, you are subject to transitional obligations. This includes producers, importers, large retailers and stockholders.
How to comply: 4 steps for Qatar businesses
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Product classification and laboratory testing
- Obtain GTA-accredited laboratory reports detailing sugar and sweetener content.
- Without a report, products default to the highest tax tier of QAR 1.06 per litre.
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Register products on the Dhareeba portal
- Update existing registrations and classify products under the new tiers.
- Provide laboratory reports, product details and nutritional labels.
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File the transitional declaration
- Conduct a full stock count on 5 July 2026.
- Submit an audited inventory report via Dhareeba within 90 days, by 4 October 2026.
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Settle the tax due
- Pay outstanding excise tax within 30 days of filing the audited report, no later than 3 November 2026.
Additional compliance actions for businesses
Businesses must also:
- Update excise tax registrations to reflect the new product categories.
- Register all products with supporting documentation.
- Reconfigure ERP systems to integrate excise tax into pricing and accounting.
- Adjust pricing strategies to remain competitive under the sugar-based tax model.
- Train staff to understand and implement the new compliance requirements.
The compliance window is short and preparation must begin immediately. Businesses should prioritise laboratory testing, product registration and auditor engagement to avoid penalties and ensure a smooth transition under the new excise tax regime.