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September 20, 2024
2024-1731

Slovakia introduces tax on sweetened nonalcoholic beverages

  • A new law in Slovakia will tax sweetened nonalcoholic drinks and concentrates, beginning 1 January 2025.
  • The new law will tax high-caffeine beverages at a higher rate than sweetened drinks.
  • Manufacturers or suppliers must pay the new tax at the point of the first distribution.
 

On 11 September 2024, the Slovakian Parliament passed the Act on Tax for sweetened nonalcoholic beverages (commonly referred to as the "sugar tax"). The Act imposes a tax on beverages sweetened with sugar and other sweetening agents as part of an effort to consolidate public finances. The tax is set to take effect on 1 January 2025.

The Act identifies three categories of sweetened beverages that will be subject to the sugar tax:

  1. Packaged sweetened drinks intended for direct consumption
  2. Packaged concentrates, such as syrups, powders or effervescent tablets, designed for preparation of sweetened beverages when mixed with other substances (water, ice, CO2, milk or milk substitutes)
  3. High-caffeine beverages containing more than 150 mg of caffeine per liter

Manufacturers or suppliers are responsible for paying the sugar tax at the point of the first distribution of the affected sweetened nonalcoholic beverages within Slovakia. The tax period is defined as a calendar month, and taxpayers must file their sugar tax returns within 25 days following the end of each tax period.

The Act introduces various tax rates depending on the category and type of beverage, with notably higher rates for high-caffeine drinks. In brief, the approved rates are:

  • €0.15 per liter for packaged beverages ready for consumption
  • €0.30 per liter for packaged beverages with high-caffeine content
  • €1.05 per liter or €4.30 per kilogram on packaged concentrated substance intended for preparation of drinks
  • €2.10 per liter or €8.60 per kilogram for high-caffeine drink concentrates intended for preparation of drinks

The Act also contains provisions to address instances of stockpiling sweetened nonalcoholic beverages in 2024 to avoid paying the sugar tax upon its implementation in 2025.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young, s. r. o. (Slovakia) Bratislava

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
 

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