Rewaa provides the option to activate Tobacco Fees, which allows you to calculate them automatically along with VAT without the need to configure them manually. This article explains all the details.
What Are Tobacco Fees?
They are fees imposed by the Ministry of Municipal and Rural Affairs and Housing on businesses licensed to sell tobacco products, such as shisha shops, restaurants, or cafes that provide tobacco-related services.
Tobacco fees are applied on the product price in addition to VAT.
ℹ️ Note: Tobacco products sold in grocery stores or supermarkets are not subject to these fees, since they are not classified under tobacco-serving activities.
Important Information Before You Start
Once activated, Tobacco Fees are added as part of the Tax Types. To apply them, you must assign them to each product subject to the fees.
Once Tobacco Fees are activated on the platform, they cannot be disabled. However, you can unassign them from products where they were previously applied.
Steps to Activate Tobacco Fees and Assign Them to Products
Go to Settings > Taxes.
Click the Activate button next to Tobacco Fees + VAT.
Click Activate Tobacco Fees to confirm.
The fees are now active. Go to Products & Inventory > Products and start assigning them to applicable products.
How Tobacco Fees and VAT Are Calculated
Tobacco Fees include:
100% Tobacco Fee on the product price (minimum SAR 25 per unit).
15% VAT applied on the total price after adding the tobacco fee.
Calculation Method:
If the product price is less than or equal to SAR 25, the minimum fee of SAR 25 applies.
If the product price is more than SAR 25, a 100% tobacco fee is applied on the price.
After adding the tobacco fee, a 15% VAT is applied on the total.
Tobacco fees appear at the bottom of the invoice, showing both the VAT amount and the Tobacco Fees.
Examples of Tobacco Fees Calculation
| Product Price Less Than 25 SAR | Product Price Equals 25 SAR | Product Price Greater Than 25 SAR |
Quantity | 1 | 1 | 1 |
Product Price (per unit) (Excl. Tax) | 18 SAR | 25 SAR | 40 SAR |
Tobacco Fee (per unit) | 25 SAR (Minimum Amount) | 25 SAR | 40 ريال (100% per unit) |
(Product Price + Tobacco Fee) | 43 SAR | 50 SAR | 80 SAR |
15% VAT on Price After Adding Tobacco Fee | 6.45 SAR | 7.50 SAR | 12 SAR |
Total (Incl. Tobacco Fee + VAT) | 49.45 SAR | 57.50 SAR | 92 SAR |
FAQs
1. Can I deactivate Tobacco Fees after enabling them?
No. Tobacco Fees cannot be deactivated once enabled. However, you can unassign them from specific products.
2. How do I assign Tobacco Fees to products in inventory?
You can assign Tobacco Fees when adding a product manually or when uploading products via Excel.
3. Do Tobacco Fees appear in the Tax Declaration Report?
No. Tobacco Fees do not appear in the VAT declaration report because they are imposed by the Ministry of Municipal and Rural Affairs and Housing. VAT declaration reports only reflect VAT from ZATCA.
4. Will Tobacco Fees appear separately from VAT on the invoice?
Yes. Tobacco Fees appear separately from VAT in the invoice details at the bottom.
5. Is there a report to view sales of products subject to Tobacco Fees?
Yes. Go to Reports > Sales by Invoice Report to view sales of products subject to Tobacco Fees.