Sugar Sweetened Drinks Tax

If you sell Sugar Sweetened Drinks you could be liable!!!!

Do you make the first supply of Sugar Sweetened Drinks in state? This includes producers, wholesalers, restaurants and shops. If so then from the 1st May 2018 you will be liable to register, file returns and pay Sugar Sweetened Drinks Tax (SSDT).

The tax will apply to water and juiced based drinks which may be in ready to consume or in concentrated form. The tax will apply on a volumetric basis at one of two rates, dependent on the total sugar content of the “ready to consume” form of the sugar sweetened Drink. An SSDT rate of €16.26 per hectolitre will apply to drinks with total sugar content of 5 grams or more, but less then 8 grams, per 100 millilitres. A higher SSDT rate of €24.39 will apply to drinks with a total sugar content of 8 grams or more per 100 millilitres. These rates equate to €20 and €30 per hectolitre once VAT is applied.

If a product meets the following criteria it will be liable to SSDT:

1. If the Combined Nomenclature (CN) of the European Union listed under heading 2009 or 2202. (Not all products under 2202 are liable. Please check with producer/wholesaler/distributor)

2.If there is added sugar in the product.

3.If this is the first supply in the state of this product. The first supply in the state will include producing a Sugar Sweetened Drinks Product and selling in the state or importing (including purchases in Northern Ireland) a Sugar Sweetened Drinks Product and selling it in the state.

If all of the above apply to any products you sell you will need to do the following:

1. Register online before the 1st May 2018 for SSDT

2. Have a system in place to record the litres sold and what rate applies to each produce

3. Submit returns to revenue

You will not be required to identify the SSDT as a separate line on the invoices; however you are required to retain all records relevant to the tax for six years.

If you export Sugar Sweetened Drinks there is a relief available.

For more information on the above please follow the link below: