GTL Summary:

Article 7 of the GCC Common Excise Tax Agreement defines the specific persons who are legally obligated to pay excise tax. This liability extends to several entities based on their role and the status of the goods. This includes: a person producing excise goods outside a tax suspension arrangement; a person possessing non-tax-paid goods outside suspension; and the licensed warehouse keeper when goods are released from suspension. Liability also falls on the licensee for goods lost or damaged in suspension (as per Article 4), the importer of excise goods, a licensee breaching transport suspension terms (as per Article 5), and any other person releasing goods for consumption.

Document Type: Tax Law Article
Law: Common Excise Agreement
Article Number: 7
Country: 🏳️ GCC
Location: Chapter 3 - Payment of Tax
Order: 7
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 3 - Payment of Tax

Article 7 - Person Obliged To Pay Tax

The Person Obliged To Pay Tax is:

A person who produces Excise Goods outside a Tax Suspension Situation.
A person who possesses Excise Goods on which the Due Tax has not been paid outside the Tax Suspension Situation as determined by the Tax Administration.
The Licensee when the Excise Goods are released from the Tax Suspension Situation.
The Licensee when Excise Goods are released for consumption by reason of loss thereof or damage thereto in a Tax Suspension Situation according to the provisions of paragraph 2-E of Article 4 of this Agreement.
The importer of Excise Goods.
The Licensee when transporting Excise Goods in breach of the terms of Suspension provided for in Article 5 of this Agreement.
Any other person releasing Excise Goods for consumption.

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