Parliament approved the implementation of a new tax: Sweetened non-alcoholic beverages will be more expensive

The new Act on sweetened non-alcoholic beverages tax (hereinafter “the Act”) with effect from 1 January 2025 which introduced the Ministry of Finance of the Slovak Republic as part of the government's consolidation package, was approved by the Parliament on 11 September 2024.

The aim of this Act is to introduce a tax on sweetened non-alcoholic beverages to which non-alcoholic beverages sweetened with sugar or any other sweeteners will be subject.

The subject of the tax is the sweetened non-alcoholic beverage that is supplied for the first time in Slovakia. This generally includes:

• packaged sweetened non-alcoholic waters (such as flavored mineral waters or lemonades),
• fruit and vegetable juices,
• energy drinks,
• non-alcoholic beer,
• syrups and concentrates with added sugar, a
• any other packaged sweetened non-alcoholic beverages containing coffee, tea or their substitute.

Tax Exemptions

The Act includes also exemptions that are exempt from taxation, such as sweetened non-alcoholic beverages that are initial or follow-on infant formula, sweetened non-alcoholic beverages that are a total meal replacement for weight control, or packaged concentrates that are a medicinal drug or nutritional supplement.

Who is the taxpayer?

Pursuant to the Act, the taxpayer of sweetened non-alcoholic beverages as of 1 January 2025 is a manufacturer of a sweetened non-alcoholic beverages or a supplier of sweetened non-alcoholic beverages. The Act defines the manufacturer of a sweetened non-alcoholic beverage as a taxable person who produces a sweetened non-alcoholic beverage in Slovakia and performs the first supply of this sweetened non-alcoholic beverage in Slovakia, whereas the supplier of a sweetened non-alcoholic beverage is a taxable person other than the manufacturer of the sweetened non-alcoholic beverage who performs the first supply of this sweetened non-alcoholic beverage in Slovakia, if he acquired this sweetened non-alcoholic beverage from abroad.

Within the framework of transitional provisions, the Act aims to grasp situations that prevent the companies from stockpiling of sweetened non-alcoholic beverages by a special provision establishing tax liability date in the case of stockpiling before the law comes into effect.

If you would be interested in more information about the obligation to pay tax on sweetened non-alcoholic beverages, please contact us and we will be happy to assist you.