Newsletter

Draft amendments to the regulations on sugar levies

A new draft bill by the Minister of Finance, proposing amendments to the Public Health Act, has been submitted for public consultation. The aim of the draft is to simplify the sugar levy system and eliminate restrictions and interpretative uncertainties in this area.

Proposed changes

The draft bill provides for significant changes to the sugar levy settlement system, including in particular:

Transferring the obligation to pay the levy to producers, importers or entities purchasing beverages within the EU

• the aim of the change is to transfer the obligation to pay the levy to the beginning of the supply chain – the levy will apply to the first sale in the country of beverages purchased within the EU, imported and produced in the country;
• under the current legal framework, where the obligation to pay is linked to the placing of certain products on the domestic market, it is very difficult to determine who is liable to pay.

Introduction of a uniform definition of a beverage

• the draft clearly states that a beverage is both a liquid for direct consumption and a concentrate for preparing a liquid for direct consumption with the addition of sugars that are monosaccharides or disaccharides, foodstuffs containing monosaccharides or disaccharides or sweeteners referred to in Regulation (EC) No 1333/2008 of the European Parliament and of the Council, as well as with the addition of caffeine or taurine;
• the definition aims to remove doubts regarding the coverage of certain concentrates by the levy.

Clarification of the rules governing products exempt from the sugar levy

• the rules introduce a number of clarifications regarding products not subject to the sugar levy;
• for example, food supplements currently benefit from a relevant exemption, which has led to many abuses;
• after the changes, the exemption will continue to apply but will be limited to food supplements that are offered for sale in packages not exceeding 200 ml.

Clarification of the basis for calculating the levy

• Currently, the method of determining the basis for calculating the levy is criticised in case law, including the Supreme Administrative Court’s judgment of 1 March 2023, III FSK 1278/22.
• the basis for calculating the fee is to be the sugar content of the beverage (regardless of the source of the sugar in the beverage) or sweeteners and the caffeine or taurine content;
• the amount of the fee is to be influenced by both the sugar content added to the beverage and the sugar content derived from foodstuffs added to the beverage, as well as the sugar content naturally present in the beverage;
• the new provision aims to eliminate interpretative doubts arising in connection with the calculation of the fee on the sugar content of beverages.

Introduction of the possibility of refunding the levy in cases where beverages were subject to intra-Community supply or export of goods.

• currently, the law does not provide for the possibility of refunding the levy on beverages with the levy paid that are exported from the country as part of intra-Community supply of goods (ICS) or export;
• the possibility of a refund is to be limited to the entity that paid the levy and the first purchaser who purchases the beverages directly from the entity obliged to pay the levy and then exports them outside the country as part of export or intra-Community supply;
• the refund will be made at the request of the eligible entity submitted within 6 months from the date of intra-Community supply or export;
• the aim of the change is to increase the competitiveness of beverages sold outside the country.

In light of the proposed changes, we can support you in, among other things:

• analysing whether the new regulations impose additional obligations on your organisation and, if necessary, preparing your company for their implementation,
• reviewing your range and composition of beverages to determine which products may be subject to the sugar levy or be exempt from it under the new regulations.

If you have any questions or concerns regarding the sugar levy, please do not hesitate to contact us.

KONTAKT

Elżbieta Lis Partner, Katowice

E: elzbieta.lis@pl.Andersen.com
T: +48 32 731 68 58
M: +48 664 948 038

Aleksandra Kalinowska Partner, Warsaw

E: aleksandra.kalinowska@pl.Andersen.com
T: +48 22 690 08 70
M: +48 724 440 693

Szymon Chyra Senior Manager | Tax advisor, Katowice

E: szymon.chyra@pl.Andersen.com
T: +48 32 731 68 50

Mateusz Jabkiewicz Experienced Consultant, Warsaw

E: mateusz.jabkiewicz@pl.Andersen.com
T: +48 22 690 08 88