In the campaign against the overweight and obesity, Poland plans to introduce sugar tax from 1 July 2020.
The bill, which was adopted by the Parliament (Sejm) on 14 February 2020, imposes:
- sugar fee - a fee on drinks containing (i) sugars (monosaccharides or disaccharides), (ii) food products containing these substances and sweeteners referred to in Regulation (EC) No 1333/2008 of the European Parliament and of the Council on food additives – i.a. mannitol and xylitol, (iii) caffeine or (iv) taurine;
- alcohol fee - a fee on alcoholic beverages of up to 300 ml in volume.
Who will pay, and how much?
This fee will be charged to entities placing on the domestic market beverages (and syrups that are food products) containing the abovementioned sugars and sweeteners, as well as caffeine or taurine.
According to the bill, placing on the domestic market beverages means selling them by:
- sellers - entities selling beverages to retail outlets or - in the case of the producers - entities carrying out retail sales of beverages;
- ordering parties - if the composition of the taxed drink forms part of the contract concluded by the producer on the production of this drink for the ordering party
to the first point where (i) retail sales are carried out or (ii) retail sales are carried out by the producer or (iii) to an entity trading both: retail and wholesale.
The amount of the fee depends on the level of sugar content in the drink, and in the case of sweeteners referred to in Regulation 1333/2008, caffeine and taurine - on the content in the drink (regardless of the level). The maximum amount of the fee may not exceed PLN 1.20 per 1 liter of drink.
Entities charged with a sugar fee will be required to submit electronic information and calculate and pay the fee by the 25th day of the month following the month to which the information relates to.
According to the bill, a fee will be imposed i.a. on entities conducting within the country wholesale trade of alcoholic beverages with an alcohol content up to and above 18%, who supply retailers licensed to sale alcoholic beverages intended for consumption outside retail outlets.
The fee is to be PLN 25 for each liter of 100% alcohol delivered in packages of up to 300 ml in volume.
Wholesalers will be obliged to submit electronic information and calculate and pay the fee by the end of the month following the end of the half-year to the tax office.
If you would like to discuss the impact of these upcoming changes on your business activity, please contact us:
Head of Tax
Tax Manager - Tax Adviser