From 1 April 2019, the Soft Drinks Industry Levy ('the levy') will be introduced in the Isle of Man. The levy mirrors that already in place in the United Kingdom ('UK'). The levy is aimed at producers and importers on the Island of soft drinks containing added sugar.
If your business purchases soft drinks from suppliers in the UK you will not need to register or account for any levy, as it should have been accounted for by the producers/packagers/importers in the UK.
If your business imports soft drinks into the Island from places other than the UK, or your business produces soft drinks on the Island, you may be required to be registered. There is an exemption for small producers who produce less than 1 million litres of drinks liable to the levy. Further details can be found on the UK Government website.
The levy has a main rate of 18 pence per litre, which applies to drinks containing at least 5 grams of added sugar per 100ml, and a higher rate of 24 pence per litre for drinks containing at least 8 grams of added sugar per 100ml.
The levy does not apply to any drinks where no sugar is added. Milk-based drinks with a milk content of 75% or more and milk substitute drinks are not subject to the levy. Fruit juice and vegetable juice are also not subject to the levy. While alcoholic drinks with an ABV of up to 1.2% are within the scope of the levy, there are provisions to exclude certain drinks that fall within this category. Further details with regard to the drinks that are and are not liable to the levy can be found on the UK Government website.
If you are required to register for the Soft Drinks Industry Levy please contact the Isle of Man Customs and Excise Division - do not register with HMRC.
If your business produces packages or imports drinks liable to the levy in the UK, you may be required to register with HMRC and should contact them. Further details can be found on their website.
If you have any queries with regard to the Soft Drinks Industry Levy in the Isle of Man please telephone +44 1624 648100 or email customs@gov.im
