Does the Sugar Sweetened Drinks Tax affect you?

With effect from 1st May 2018 a new tax, known as sugar-sweetened drinks tax (SSDT) was introduced in Ireland. The tax will apply to a sugar sweetened drink with a sugar content of 5g or more per 100 millilitres at the time it is first supplied in the State by a supplier. The supplier is liable to account for and pay the tax. The tax only applies to water and juice-based drinks with added sugar. Taxable sugar sweetened drinks may be in ready to consume or concentrated form.

Ready to consume sugar sweetened drinks subject to SSDT include:

Concentrated sugar sweetened drinks liable to SSDT include:

In determining if a product is liable to SSDT three criteria must be satisfied:

  1. Combined Nomenclature (CN) Classification,
  2. Added sugar,
  3. The total sugar content.

If a product is liable to SSDT two tax bands are applicable. It will apply at a rate of 30 cent per litre if drinks have over 8g of sugar per 100ml, while a 20 cent per litre tax will apply if drinks have between 5g and 8g of sugar per 100ml. Drinks with less than 5g of sugar will not be taxed.

There are some exemptions to SSDT. Fruit juices, dairy products and soya products are exempt from the tax. In addition, alcoholic drinks are excluded. There is also an exemption for small producers – i.e. products which are produced by certain small producers which are exempted from particular EU labelling obligations. Finally, full relief from the tax will be granted to registered exporters who can prove to the satisfaction of the Irish Revenue that a product subject to the tax in the State has been exported outside of the State.

Please contact Róisín Mc Daid OSK Tax on 01 439 4200 if you feel your business may be impacted by the SSDT or for other tax advice.

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