The Sugar Sweetened Drinks Tax (SSDT) came into effect in Ireland on the 1st May 2018.
The objective of the tax is to reduce rates of childhood and adult obesity in Ireland by reducing the consumption of sugar sweetened drinks which have been proven to contribute to health deterioration, particularly among young people.
Whilst the tax has been welcomed by many, it has not been met with universal approval, with some commentators describing it as yet another example of our sometimes regressive tax system.
The tax operates as an excise duty and is administered on a self-assessment basis.
Here are some of the facts relating to the tax and how it operates:
The following conditions must be fulfilled for tax to apply on a drink:
- The drink must be non-alcoholic, alcoholic drinks with sugar contents are outside the scope of the tax
- The drink must have a sugar content of more than 5g per 100mililitres
- The drink must be water based and juice-based and does not apply to alcohol
- The drink must be in a concentrated form or ready to drink
- Dairy products are outside the scope of the tax on the grounds they offer nutritional value
The rates of tax are as follows:
- 30cent per litre if the sugar content is more than 8g per 100ml
- 20cent per litre if the sugar content is between 5g and 8g per 100ml
- Drinks with less than 5g of sugar will not be taxed
If you are a wholesaler, distributor, retailer, producer or importer of sugar sweetened drinks you may be affected. This also applies to companies making self-supplies for example to employees.
The tax is applied on first supply in the State and that supplier shall be accountable for and liable to pay the tax due.
Who needs to register as a Sugar Sweetened Drinks Supplier (SSDS)?
- Wholesalers making first supplies in the State of taxable drinks they sourced outside the State
- Retailers making first supplies in the State of taxable drinks they sourced outside the State
- Producers making first supplies in the State of taxable drinks they produced in the State
Filing requirements are as follows:
- All Sugar Sweetened Drinks Suppliers are required to file a return and pay any liability no later than one month after the end of an accounting period
- If a registered supplier has not made any supplies in the accounting period then a nil return must be submitted
