October 27, 2020
Poland implements new charge on certain beverages from 1 January 2021
Poland is implementing a new charge on certain sweetened beverages. The sweetened beverage tax (SBT) will generally apply to sales of two types of drinks:
The level of the SBT for sweet beverages will depend on the sugar content in 100 ml of product (max. PLN1.2/liter) while the charge for alcoholic drinks will depend on a total liter capacity of sold products (PLN25/liter of 100% alcohol).
The SBT will be due on different levels of the supply chain as follows:
Details of the rules on a charge due point raise multiple practical questions, e.g., whether the due date will be equal to the tax point under Value Added Tax, How are "retail sales" defined (is HoReCa covered?), to the process to verify the capacity of our contractors, and who actually is a producer in particular scenarios? Are sales through vending machines excluded from definition and, if so, what kind of machines?
The SBT requires a new type of reporting – its payers will be required to file an electronic statement containing, inter alia, the amount of the fee; and data about the number of liters of beverages subject to the SBT and information about invoices issued with relation to respective sales. The filing due date, as well as tax due date will be:
The Act introducing the SBT is a new instrument introduced by the Polish Government and it does not provide explanation or guidance on a number of practical issues. At the same time, the Act introduces a fine of an additional 50% charge if the SBT is not duly paid. To clarify certain issues, impacted taxpayers may consider applying for a tax ruling to clarify the new tax requirements.
For additional information with respect to this Alert, please contact the following:
EY Doradztwo Podatkowe Krupa sp. k., Warsaw
EY Doradztwo Podatkowe Krupa sp.k., Wroclaw
PDF version of this Tax Alert