In this edition of our news flash, we would like to introduce the approved act on the tax on sweetened non-alcoholic beverages in Slovakia, which aims to positively impact public finances as well as our own health. This tax is an indirect consumption tax and will generally be collected and paid to the state budget by business entities making the first supply of a sweetened non-alcoholic beverage in the domestic market, which will be reflected in the price of the beverage. The law will be effective from January 1, 2025.

Who is the taxpayer?

The taxpayer is the producer or supplier of the sweetened non-alcoholic beverage. A producer is a taxable person (as defined by the VAT Act) who manufactures the sweetened non-alcoholic beverage domestically and makes the first domestic supply of the beverage. A supplier is a taxable person other than the producer, who makes the first domestic supply of the sweetened non-alcoholic beverage if they have acquired the beverage from abroad.

What is the subject of the tax?

The subject of the tax is the sweetened non-alcoholic beverage that is supplied for the first time in the Slovak Republic. This generally includes fruit and vegetable juices, 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. Unlike the original draft of the act, the final version also includes any other packaged sweetened non-alcoholic beverages that contain coffee, tea, or their substitutes, even if they contain milk, milk components, or other plant-based alternatives. Examples include packaged iced coffee, coffee drinks with plant-based milk substitutes, cereal-based coffee drinks, or packaged tea with milk, including concentrated forms. The tax also applies to packaged concentrated substances that require the addition of water, ice, carbon dioxide, milk, or its plant-based substitute before final consumption, such as powdered or capsule-based coffee drinks containing added sugar or sweeteners.

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

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

• €0.15 per liter for packaged drinks intended for direct consumption
• Packaged concentrated substances that require preparation before consumption:
  • €1.05 per liter if supplied in any unit of volume
  • €0.15 per liter if prepared by adding water, ice, carbon dioxide, milk, or a plant-based substitute
  • €4.30 per kilogram if supplied in any unit of weight

• Energy drinks containing caffeine from any source in amounts exceeding 150 mg/l:
  • €0.30 per liter for packaged drinks intended for direct consumption
  • €2.10 per liter if supplied in any unit of volume
  • €0.30 per liter if prepared by adding water, ice, carbon dioxide, milk, or a plant-based substitute
  • €8.60 per kilogram if supplied in any unit of weight

To determine the correct tax rate, the information on the beverage label must be considered.

When does the tax liability arise?

The tax liability arises on the day of the first supply of the sweetened non-alcoholic beverage in the domestic market. If the taxpayer acquires a sweetened non-alcoholic beverage from abroad for the purpose of first domestic supply, they may opt to have the tax liability arise on the day the beverage is acquired from abroad.

According to transitional provisions, no tax liability arises if the first supply of the sweetened non-alcoholic beverage occurs before December 31, 2024. However, there is a special provision for stockpiling sweetened non-alcoholic beverages before the law comes into effect. Simply put, if a taxpayer subject to an audited financial statement acquires sweetened non-alcoholic beverages between July 1, 2024, and December 31, 2024, in quantities greater than 1.25 times the amount acquired between July 1, 2023, and December 31, 2023, they must perform an inventory of sweetened non-alcoholic beverages as of December 31, 2024. Any positive difference between the inventory amount and 1.25 times the amount acquired in the same period of 2023 will be considered first supplied on January 1, 2025, and the tax liability will arise by March 31, 2025.

What is the taxable period?

The tax period is the calendar month. The taxpayer must submit a tax return by the 25th day of the month following the end of the tax period in which the tax liability or the obligation to correct the tax base arose. The tax will also be payable within this deadline.

What are the administrative obligations?

The taxpayer must keep records necessary for determining the tax, including:

• The trade name of the sweetened non-alcoholic beverage
• The relevant combined nomenclature code
• The tax base
• Information justifying the tax rate
• The tax rate
• The quantity of returned sweetened non-alcoholic beverage
• Documentation proving the shipment or transport of the returned beverage
• Information for correcting the tax base,
• etc.

Additionally, the taxpayer must maintain detailed records on:

• The total amount of sweetened non-alcoholic beverage produced
• The total amount acquired from abroad
• The amount supplied domestically with shipment or transport abroad
• The total amount of sweetened beverage produced and received, with added sugar or sweeteners
• The total amount of concentrated substances with added sugar or sweeteners produced and received

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 (TIN) and incurs a tax liability for the first time for this tax must inform the tax authority within five days of the first tax liability arising. The tax authority will register the taxpayer without delay.

A taxpayer without a TIN must apply for registration within five days of the first tax liability arising. The tax authority will register the taxpayer within ten days and assign them an account number for paying the tax.

The registration can be canceled upon request if the taxpayer proves they have ceased producing sweetened non-alcoholic beverages domestically or are no longer a supplier.

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

If the sweetened non-alcoholic beverage is transported from Slovakia abroad for consumption, you must register as an exporter. In that case, you are entitled to a tax refund for the sweetened non-alcoholic beverage that was taxed in the price of the beverage. However, this comes with additional administrative obligations.

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

Barbora Juhásová

Tax Manager | Accace Slovakia

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