Importing Soft Drinks to the UK: Duty, VAT and the Sugar Levy

Importing soft drinks to the United Kingdom is an opportunity for businesses that want to enter a large UK drinks market. It does require knowing the customs and tax rules, preparing the right documents and adapting the product to British requirements. Below we explain how to run the import step by step.

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Why import soft drinks to the UK

• The UK is a large soft drinks market, in which reduced-sugar, functional and organic drinks are gaining importance.
• Under the EU-UK Trade and Cooperation Agreement (TCA), goods with EU preferential origin can enter the UK at 0% duty.
• Transport from the EU is shorter than from Asia or the Americas.

How to import soft drinks to the UK

Required documents

To avoid clearance delays, prepare:

• a commercial invoice with a description of the goods, quantity and value,
• a packing list with the detailed contents of the shipment,
• an EORI number, essential for customs procedures (see how to get an EORI number),
• proof of origin: to claim the 0% TCA preference you need a statement on origin made out by the exporter (an EU exporter needs a REX number above EUR 6,000) or the importer's knowledge. The EUR.1 certificate is not used in EU-UK trade (GOV.UK); more in statement on origin and the REX system,
• the HS code: classification depends on the type of drink, e.g. 2201 - waters (including mineral and aerated) without added sugar or flavouring; 2202 - waters with added sugar, sweetener or flavouring and other non-alcoholic beverages; 2009 - fruit and vegetable juices (UK Trade Tariff; see also HS codes),
• a Safety and Security GB declaration to HMRC before the goods arrive.

Duty and VAT

• Duty: the standard rate depends on the code - for example 8% for sweetened and flavoured drinks under 2202 10 00, and 0% for plain water under 2201 90 00. With EU preferential origin and proof of origin the rate is 0%.
• VAT: soft drinks, including juices and bottled waters, are standard-rated at 20% (VAT Notice 701/14). The basis is the customs (CIF) value plus duty and costs up to the first UK destination. See how to calculate duty and VAT when importing from the UK.

Sugar tax (Soft Drinks Industry Levy)

A drink is liable for the SDIL if it contains at least 5g of sugar per 100ml (ready to drink or diluted), sugar was added during production and the alcohol content is no more than 1.2% ABV. From 1 April 2026 the rates are GBP 2.08 per 10 litres for drinks with 5g to under 8g of sugar per 100ml and GBP 2.78 per 10 litres for drinks with 8g or more (GOV.UK). Exempt drinks include, among others, drinks made with fruit juice and no other added sugar, and drinks that are at least 75% milk.

A business bringing such drinks into the UK from abroad, including from the EU, may need to register, report and pay; who is responsible depends on who imports the goods and whether the supplier has a UK presence (rules for importers). Agree this with your partner before the first delivery and keep a record of what you agreed.

Compliance with UK regulations

Labelling requirements

Every product must meet UK food labelling standards:

• information on nutritional values, ingredients and allergens,
• contact details of the manufacturer or distributor,
• best-before or use-by date marking.

Food safety

Drinks must comply with UK food safety rules overseen by, among others, the Food Standards Agency (FSA). Before the first delivery, check on GOV.UK whether your product is subject to any additional controls.

Sales channels in the UK

• Supermarkets (e.g. Tesco, Sainsbury's, Asda) - the widest reach, but they require stable supply and competitive pricing.
• Wholesalers - a good way into small shops and local delicatessens.
• E-commerce - Amazon UK and Ocado, or your own online shop in a Direct-to-Consumer (D2C) model, which gives more control over sales.
• HoReCa - restaurants, hotels and cafés are good outlets for premium drinks such as organic juices, kombucha or functional drinks.

Logistics and import costs

• Road and sea freight is the usual choice for larger consignments from the EU; air freight is more expensive and used mainly for urgent, small shipments.
• Storage: if products require refrigeration, choose a temperature-controlled warehouse.

Example duty rates according to the UK Trade Tariff (as at 25 October 2026):

Rates depend on the exact code, so always check your code in the tariff. The table does not include the SDIL or any service fees, which we publish only on the how much does customs clearance cost page.

Marketing and brand building in the UK

1. Social media: promote products on Instagram and TikTok with visually striking campaigns.
2. Influencer marketing: work with creators who promote a healthy lifestyle.
3. Tastings and trade shows: organise tastings in shops and take part in trade shows such as the UK Food & Drink Expo.

Example: Dash Water. A sparkling water brand that uses "wonky" fruit has built its position on a distinctive eco-friendly message.

The UK HoReCa market for drinks importers

Hotels, restaurants and cafés are an important sales channel for soft drinks. The segments have different needs:

• hotels prefer premium drinks, such as exclusive mineral waters and organic juices,
• restaurants choose drinks that complement the menu, e.g. flavoured waters or artisan lemonades,
• cafés value novelties such as kombucha, cold brew or plant-based milk alternatives.

You can sell to HoReCa directly or through wholesalers that serve the sector, such as Bidfood, Brakes or Booker. It is worth offering venues tasting packs and promotional materials. Seasonality matters too: lemonades sell in summer and teas in winter.

Summary

Importing soft drinks to the UK is demanding but has great potential. The keys are the right HS code, proof of origin for the 0% rate, accounting for VAT and - for drinks with sugar - the SDIL, and labels that comply with UK rules. Get in touch with us if you need help with clearance or advice before your first delivery.

Frequently asked questions