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Act on the tax on sweetened non-alcoholic beverages in Slovakia | News Flash

June 17, 2024
This article is also available in
Slovak

In this edition of our news flash, we would like to introduce you to the government-approved act on the tax on sweetened non-alcoholic beverages in Slovakia, which aims to positively affect the health of public finances as well as our own health. This tax is an indirect consumption tax and will essentially be collected and paid into the state budget by taxpayers making the first delivery of a sweetened non-alcoholic beverage domestically, which will collect it in the price of the sweetened non-alcoholic beverage. The proposed effective date of the act is January 1, 2025.

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Who is the taxpayer?

The taxpayer is the manufacturer or supplier of the sweetened non-alcoholic beverage. A manufacturer is a taxable person (as defined by the VAT Act) who produces a sweetened non-alcoholic beverage domestically and makes the first delivery of this sweetened non-alcoholic beverage domestically. A supplier is a taxable person other than the manufacturer who makes the first delivery of a sweetened non-alcoholic beverage domestically if this sweetened non-alcoholic beverage was acquired from abroad.

What is the subject of the tax?

The subject of the tax is the sweetened non-alcoholic beverage that is first delivered in the Slovak Republic. It will mainly include fruit and vegetable juices and packaged waters with added sugar, non-alcoholic beer, wine with an alcohol content of up to 0.5%, syrups and concentrates with added sugar, and energy drinks.

What is the tax base and what is the tax rate?

The tax base is the amount of sweetened non-alcoholic beverage in liters or kilograms. The tax rate is set as follows:

  • 0.15 EUR/liter for packaged beverages intended for direct consumption,
  • packaged concentrated substance requiring preparation before consumption:
    • 1.05 EUR/liter – if the beverage is supplied in any volume unit,
    • 4.30 EUR/kilogram – if the beverage is supplied in any weight unit,
  • 0.30 EUR/liter – beverages with high caffeine content (energy drinks).

To correctly determine the tax rate, it is necessary to rely on the information on the beverage label.

When does the tax liability arise?

The tax liability arises on the day of the first delivery of the sweetened non-alcoholic beverage domestically. If the taxpayer acquires the sweetened non-alcoholic beverage from abroad for the purpose of making the first delivery of the sweetened non-alcoholic beverage domestically, they can choose to apply the tax liability from the day of acquiring the sweetened non-alcoholic beverage from abroad.

What is the taxable period?

The taxable period is the calendar month. The taxpayer will submit the tax return by the 25th day of the following calendar month after the end of the taxable period in which the tax liability or the obligation to correct the tax base arose. The tax will also be due within the same period.

What are the administrative obligations?

The taxpayer is required to keep records necessary for the correct determination of the tax. They must include, in particular:

  • The trade name of the sweetened non-alcoholic beverage,
  • The relevant combined nomenclature code,
  • The tax base,
  • Information proving the determination of the tax rate,
  • The tax rate,
  • The amount of returned sweetened non-alcoholic beverage,
  • The amount of returned sweetened non-alcoholic beverage and documents proving the dispatch or transport of the sweetened non-alcoholic beverage,
  • Information proving the determination of the tax base adjustment,
  • etc.

In addition to the above, the taxpayer is required to keep detailed records of:

  • The total amount of sweetened non-alcoholic beverage produced,
  • The total amount of sweetened non-alcoholic beverage acquired from abroad,
  • The amount of sweetened non-alcoholic beverage delivered domestically associated with dispatch or transport abroad,
  • The total amount of produced and received beverage in the relevant nomenclature code containing added sugar or sweetener,

The total amount of produced and received concentrated substance containing added sugar or sweetener.

What are the registration or notification obligations?

A taxpayer who already has a tax identification number and incurs the first tax liability for this tax is required to inform the tax administrator of this fact within 5 days of incurring the first tax liability. The tax administrator will promptly register the taxpayer for the tax.

A taxpayer who does not yet have a tax identification number is required to apply for registration for this tax within 5 days of incurring the first tax liability. In this case, the tax administrator will register the taxpayer within 10 days and assign them a tax payment account number.

Registration can be canceled at the request of the taxpayer, especially if they can prove that they have stopped producing sweetened non-alcoholic beverages domestically or are no longer their supplier.

What if the sweetened beverage is produced domestically but is shipped for sale abroad and not consumed domestically?

If a sweetened non-alcoholic beverage is transported from Slovakia to abroad, where it is consumed, it is necessary to register as an exporter. In that case, you are entitled to a refund of the tax on the demonstrably taxed sweetened non-alcoholic beverage that you paid in the price of the beverage. However, this is associated with additional administrative obligations.

If you believe that your company may be subject to the obligation to pay the tax on sweetened non-alcoholic beverages in Slovakia from 2025 and would like more information, our tax experts will be happy to provide advice in this area.

Barbora Juhásová
Tax Manager | Accace Slovakia
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