On 1 May 2018, Ireland implemented an excise tax, the Sugar Sweetened Drinks Tax (SSDT).

Application of the SSDT

The SDDT applies to the following products:

• Products classified within particular headings of the Combined Nomenclature (CN) – CN 2009 and 2202 (customs code)
• Products that contain added sugar
• Products that contain a natural sugar and added sugar which combined have a sugar content of 5 grams or more per 100 ml

Examples of such products include flavored waters, carbonated soft drinks, and energy and sports drinks.

Rates of SSDT

The SDDT will be applied on a volumetric basis at one of two rates. The basis of assessment will be established via the information provided on the product's label or packaging.

• €16.24 per hectoliter for drinks with a total sugar content of 5 grams or more but less than 8 grams per 100 milliliters
• €24.39 per hectoliter for drinks with a total sugar content of 8 grams or more per 100 milliliters

Payment of the SSDT

The SSDT is imposed on the first supply of sugar sweetened drinks in the State by a Sugar Sweetened Drink Supplier. This covers drinks that have been brought into or produced in the State and are being supplied by the producer or importer. This also includes supplies that are free of charge.

The SSDT does not apply to:

• Second subsequent supplies, e.g., if a wholesaler or retailer is supplying goods they sourced in the State from a producer
• Supplies between connected companies

Registering for the SSDT

Both Sugared Sweetened Drinks Suppliers (SSDS) and Sugar Sweetened Drinks Exporters (SSDE) must register for the SSDT.

SSDS include:

• Wholesalers making the first supply of taxable drinks sourced from outside the State
• Retailers making the first supply in the State sourced from outside the State
• Producers making the first supply in the State of taxable drinks that are produced in the State

SSDE include:

• Wholesalers and distributors who source taxable drinks in the State and subsequently supply these drinks on a commercial basis outside the State

Separate registrations are required for taxable persons who carry out activities as both an SSDS and an SSDE.

SSDT returns

Bi-monthly returns are required for the SSDT. The deadline for the return is at the end of the month following the bi-monthly period.

The returns must include:

• The volume of the ready to consume drinks
  • At the lower rate of the SSDT
  • At the higher rate of the SSDT
• For supplies of concentrated products, the supplier must calculate the volume of ready to consume drink resulting from their preparation of the concentrated product this is the amount to which the tax will apply and what is to be recorded on the return

Record keeping and invoicing

Taxpayers are subject to the following record keeping and invoicing provisions:

• They are not required to identify the SSDT as a separate line on invoices to customers.
• They must keep all records relevant to the tax and provide these to Revenue when requested to do so.
• Accounts and records must be kept for six years.

Potential relief

Full relief available to supplies outside the State

• Full relief is available on drinks that are sourced in the State after May 2018 and have incurred the SSDT on the first supply that are subsequently supplied on a commercial basis outside the State
  • In order to be able to claim the relief on goods exported outside the State, the exporter must be registered in advance with Revenue as an SSDE – the claim must be made using ROS.
  • The relief will operate on a repayment basis to the SSDE who has paid the tax on goods sourced in the State.
• Claims must be made within one month and not more than six months, after the end of the accounting period in which the supplies are made.

Further relief is available where goods are returned

Relief may apply for goods where the supplier has already paid and filed the SSDT, and the goods are returned to the supplier.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Ireland), Dublin

• Breen Cassidy
  breen.cassidy@ie.ey.com
• Laura Galvin
  laura.galvin@ie.ey.com

Ernst & Young (Ireland), Cork

• James Fox
  james.fox@ie.ey.com

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ATTACHMENT

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