UK Sugar Tax and Coca-Cola Imports: SDIL Rates and Importer Obligations

The sugar tax (Soft Drinks Industry Levy, SDIL) has applied in the United Kingdom since April 2018 and covers sweetened drinks, including Coca-Cola. It affects prices, recipes and importers' practices. Below we set out the key aspects of this tax and its impact on international trade.

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1. What the sugar tax (SDIL) is

The SDIL covers sweetened drinks, and its rate depends on sugar content:

• 20.8 pence per litre (rate from 1 April 2026; previously 19.4 pence from 1 April 2025) for drinks containing at least 5g but less than 8g of sugar per 100ml.
• 27.8 pence per litre (rate from 1 April 2026; previously 25.9 pence from 1 April 2025) for drinks containing 8g or more of sugar per 100ml.

The levy applies to drinks with an alcohol content of 1.2% ABV or less (source: GOV.UK – Check if your drink is liable).

Coca-Cola Classic (10.6g of sugar per 100ml) is subject to the higher rate, which affects its final price.

2. Impact on imports of drinks, including Coca-Cola

Trade between the EU and the United Kingdom is governed by the Trade and Cooperation Agreement (TCA), which allows for duty-free import provided the rules of origin are met.
Key issues for importers:

• The SDIL is independent of the country of origin and also applies to drinks brought into the UK. It is not collected at the border — the business bringing the drinks in (or a supplier with a UK presence that arranges the import) registers for SDIL and reports them on its quarterly returns (source: GOV.UK).
• Import VAT (20%) is accounted for separately, on the customs declaration or through postponed VAT accounting.

3. Pricing of sweetened drinks and the SDIL

The SDIL rate depends on sugar content, not on the brand, so drinks with a higher sugar content (such as Coca-Cola Classic) are taxed at a higher rate than sugar-free variants such as Coca-Cola Zero Sugar, which is not liable. The levy is charged per litre of drink, not on its value, so it should be built into your price calculation.

4. Consumption and manufacturer strategies

The design of the levy encourages manufacturers to cut the sugar in their recipes:

• Reformulating recipes: Reducing the sugar content of some drinks to avoid higher tax rates.
• Sugar-free variants: drinks with no sugar or under 5g per 100ml are not liable.

5. Requirements for importers

Importers must meet certain requirements to place products on the UK market:

• Labelling: Information on ingredients and nutritional values must comply with UK food labelling rules (in practice, in English).
• Documentation:
  • Commercial invoice.
  • Statement on origin or the importer's knowledge — for the TCA preferential duty rate (more on statements on origin and REX).
  • Health certificates, if required.

6. Purpose of the levy

The aim of the levy is to reduce sugar intake from drinks and encourage manufacturers to cut the sugar content of their recipes. Rates depend solely on sugar content, so drinks with no sugar or under 5g per 100ml are not liable.

Summary

The UK sugar tax should be factored into the cost of importing drinks: its rate depends on sugar content, and you account for it on SDIL returns, not at the border. Duty and VAT on import are calculated separately — see Export from Poland to the UK and Duties and Taxes When Exporting Goods from Poland to the UK. The rules for soft drinks are covered in Importing Soft Drinks to the UK, and VAT accounting in Postponed VAT Accounting UK.

Planning to import drinks into the United Kingdom? Get in touch and we will help prepare the clearance and documentation. Email: info@agencjacelna.uk, phone: +44 333 335 5072.

Frequently asked questions