TAXATION OF NON-ALCOHOLIC BEVERAGES IN PORTUGAL

As of 1 February 2017, Portugal extended the Alcohol and Alcoholic Beverages Tax to include non-alcoholic beverages containing added sugar or other sweeteners. The following categories are now subject to this tax:

• Beverages for human consumption with added sugar or other sweeteners, classified under NC code 2202.

• Low-alcohol beverages falling under NC codes 2204, 2205, 2206, and 2208, with an alcohol content between 0.5% and 1.2% by volume.

• Concentrates (syrups, powders, granules, or other solid forms) intended for preparing these beverages at the point of sale or consumption.

Tax Rates

The tax rate varies based on sugar content:

• Less than 25 g/L: €1.16/hl

• 25 - 50 g/L: €6.95/hl

• 50 - 80 g/L: €9.26/hl

• 80 g/L or more: €23.18/hl

For concentrates, the applicable tax rates are:

• Liquid form: Ranging from €6.95/hl to €139.06/hl, depending on sugar content.

• Powders, granules, or solid forms: Ranging from €11.59/hl to €231.78/hl per 100 kg net weight, based on sugar levels.

Exemptions

The Excise Duties Code exempts certain beverages, including:

• Drinks based on milk, soy, or rice.

• Fruit, seaweed, vegetable juices, and cereal-based drinks (e.g., almond, cashew, hazelnut drinks).

• Beverages classified as dietary supplements or for special dietary needs.

• Products where taxation has already been applied at the concentrate stage.

• Sugar-free beverages.

• Drinks used in manufacturing, research, quality control, or taste testing.