The South African Revenue Service (SARS) will collect the Sugary Beverages Levy (SBL) as from 1 April 2018.
The levy falls under the Rates and Monetary Amounts and Revenue Laws Amendment Bill, 2017, as passed in Parliament on 5 December 2017.
Part 7A of Schedule No.1 to the Customs and Excise Act, 1964, provides for a health promotion levy on sugary beverages which have been manufactured in or imported into South Africa. Ready to drink beverages as well as preparations for making such beverages are included in the scope of the levy.
Imported products will be taxed when they are cleared for home consumption and locally manufactured products will be taxed at source.
SBL returns and payments can be submitted electronically through SARS e-Filing and will also be accepted at Customs and Excise branches.
Licensing and registration of manufacturers of sugary beverages will take place from February 2018. Only commercial manufacturers that produce sugary beverages with a total annual sugar content in excess of 500 kg per year need to be licensed and pay the SBL. Non-commercial producers below this threshold will be expected to register but will not be subject to the SBL.
The levy is fixed at 2.1 cents per gram of the sugar content that exceeds 4 grams per 100ml, which means the first 4 grams per 100ml are levy free. The levy is part of government’s programme to prevent and control non-communicable diseases (NCDs) and assist in the prevention and control of obesity.
SARS will engage industry stakeholders during roadshows to guide them through the process.
Have you considered the information and data implications for your business that will enable you to comply from 1 April?
For more information or assistance feel free to contact Kayn Woolmer at WTS South Africa at firstname.lastname@example.org