Schválené znenie zákona o dani zo sladených nealkoholických nápojov

On 11 September 2024, the parliament passed the Act on Tax on sweetened non-alcoholic beverages. This law introduces a new tax related to beverages containing added sugar or other sweetening agents and is part of the government's efforts to consolidate public finances. It is set to come into effect on 1 January 2025. Several significant changes to the law were introduced at the last minute, so let's look at its final form.

The tax on sweetened non-alcoholic beverages is an indirect consumption tax and will essentially be collected and paid into the state budget by businesses that carry out the first supply of a sweetened non-alcoholic beverage domestically, which they collect in the price of the sweetened non-alcoholic beverage.

The law distinguishes three categories of sweetened non-alcoholic beverages that will be subject to the new tax:

• Packaged sweetened non-alcoholic beverages intended for direct consumption such as flavored mineral waters, juices, nectars, various sweetened drinks, or sweetened non-alcoholic beer. The final wording of the law also expanded this category to include sweetened non-alcoholic beverages containing coffee, tea, or their substitutes.

• Packaged concentrates containing sugar or sweetener, from which a sweetened non-alcoholic beverage is prepared by mixing with water, ice, carbon dioxide, milk, or its plant substitutes. This category includes, for example, syrups, instant and powdered drinks, effervescent tablets, granules, etc. Concentrates intended for mixing with milk or its plant substitutes were added to the law just before its passing in parliament.

• High-caffeine beverages – the approved wording of the law specifically defines these as non-alcoholic beverages with a caffeine content of more than 150 mg/liter (mainly energy drinks).

The new tax will not apply to sweetened non-alcoholic beverages that are medicine, dietary supplements, infant nutrition, food for special medical purposes, or a dietary replacement for weight control. 

The law introduces different tax rates depending on the category and type of beverage, with significantly higher rates set for beverages with high caffeine content. For a brief overview, the approved rates are as follows:

• EUR 0.15 per liter for packaged beverages intended for direct consumption;

• EUR 1.05 per liter of concentrate;

• EUR 0.15 per liter of the produced beverage if the concentrate is supplied in weight units and the label, packaging, or accompanying documentation of the concentrate contains instructions for preparing a single specific amount of the final sweetened non-alcoholic beverage;

• EUR 4.30 per kilogram for packaged concentrates supplied in weight units that lack specific instructions for preparing the final sweetened non-alcoholic beverage;

• In the case of supplies of high-caffeine beverages and concentrates, the above rates are doubled.

The approved wording of the law also includes interesting provisions that address cases of "stockpiling" sweetened non-alcoholic beverages before the law comes into effect. These provisions concern taxable persons who are required to have their financial statements audited and who must monitor the quantity of sweetened non-alcoholic beverages subject to the new tax acquired during the period from July to December 2024.

The law primarily affects business entities that trade in sweetened non-alcoholic beverages domestically. If you are affected by this issue or are interested and would like to learn more about the potential tax implications, do not hesitate to contact the author of this article or your contact person at EY Slovakia.