The Sugar Sweetened Drinks Tax (SSDT) comes into effect today, 1 May 2018.
SSDT will apply on the first supply in the State of sugar sweetened drinks. The supplier will be liable to account for and pay the tax. Drinks with between five and eight grams of sugar per 100ml will be subject to a tax of 20 cent per litre. Above eight grams, a levy of 30 cent a litre will apply.
Pure fruit juices will not be subject to the tax, but once sugar is added to such juices their entire sugar content becomes liable. Dairy products are outside the scope of the tax.
The tax will operate as an excise duty and will be administered on a self-assessment basis. Suppliers will be required to register with Revenue in advance of making first supplies of sugar sweetened drinks in the State. They must file returns within one month after the end of the accounting period during which the supplies were made.
A relief from the tax will be available where sugar sweetened drinks sourced in the State are supplied, on a commercial basis, outside the State. In order to claim this relief “exporters” will need to register with Revenue in advance of making supplies outside the State.
For expert advice on accounting, auditing and taxation services please contact us at McEvoy Craig