The new tax on sweetened soft drinks which the Slovak Ministry of Finance is preparing to impose has been frequently discussed recently.
Below, we briefly describe the most important aspects of the proposed draft. Currently, the interdepartmental commenting procedure is underway, and changes to how this tax will function proposed by professional members of the public are likely.
The act will apply to soft drinks sweetened with sugar or other sweetener. Three categories are specifically defined: packaged soft drinks ready for consumption; concentrated substances requiring preparation; and packaged high-caffeine soft drinks.
The tax rate will depend on the soft drink category:
- 0.15€/l for packaged soft drinks ready for consumption (juices);
- 0.30€/l for packaged high-caffeine soft drinks (energy drinks); and
- 1.05€/l or 4.30€/kg for concentrated substances for the preparation of soft drinks (syrups, instant and powder drinks).
The tax will be calculated as the product of the supplied soft drinks in litres or kilograms (tax base) and the respective tax rate.
Beverages in specific food categories (essential for nourishment or specific population groups) will be exempt from taxation.
A tax return will have to be filed, and the tax paid every month within 25 days of the end of a taxable period.
The act also includes the option to refund the tax from a documentably taxed soft drink, and the tax may also be refunded where a soft drink was destroyed or spoilt. Specific legal conditions must be met as regards refunds, and a separate tax return must also be filed.
The taxpayer will either be:
- a soft drink producer who performs the first delivery of a sweetened soft drink in Slovakia,
- or a soft drink supplier who performs the first delivery in Slovakia of a sweetened soft drink purchased in another country (EU and third countries). The tax liability will arise on the day of the first delivery in Slovakia.
Entities with an assigned tax ID No. (DIČ) must notify the tax administrator of the same within 5 days of the day on which the first tax liability arises. Entities without a tax ID No. (DIČ) must apply for tax registration within the same period.
Under the act, taxpayers will also be obliged to maintain detailed records and supporting documentation of purchased and delivered soft drinks.
If approved, the act will become effective as of 1 January 2025.
The act proposers’ objective is to regulate the consumption of sweetened soft drinks and generate additional income to the national budget.
What are the implications?
Business entities engaged in the production and distribution of sweetened soft drinks, retail, and entities in the gastronomy sector should check which products from their portfolio will be subject to this tax and what measures they must take to comply with the required obligations, especially as regard correct tax payment and record keeping. These measures will require the set-up of (change to) internal systems, which will lead to additional costs and create an administrative burden.
Contact us
