UK Soft Drinks Industry Levy: Sugar Tax on Sugary Drinks
Reference for the UK Soft Drinks Industry Levy (SDIL), a levy on producers and importers of sugar-sweetened soft drinks. Two tiers apply based on sugar content; the cost is typically passed through to retail prices.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
The Soft Drinks Industry Levy (SDIL) was introduced in April 2018. It is charged on producers and importers of sugar-sweetened soft drinks (ready-to-drink) with total sugar content of 5 grams or more per 100 millilitres. Two bands apply: the standard rate for drinks with 8g+ sugar per 100ml, and the higher rate for drinks with 5g to less than 8g. Fruit juices, milk-based drinks, and alcohol are excluded. The levy is typically passed through to consumers in retail prices; online merchants selling affected products into the UK need to ensure their supply chain has accounted for SDIL.
Fee schedule by jurisdiction
1 jurisdiction with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| United Kingdom | £0.24 per litre (standard: 8g+ sugar/100ml); £0.18 per litre (higher: 5g to <8g/100ml) |
United Kingdom
£0.24 per litre (standard: 8g+ sugar/100ml); £0.18 per litre (higher: 5g to <8g/100ml)
Sugar-sweetened soft drinks (ready-to-drink) with 5g+ added sugar per 100ml
Paid by producers/importers; typically reflected in wholesale/retail price. Exempt: fruit juice, milk, alcohol, no-added-sugar drinks.
Enforcement
Producers and importers must register with HMRC and pay the levy. Non-compliance can result in penalties and interest.
Official sources
Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- Soft Drinks Industry Levy
- Country
- United Kingdom
- Jurisdictions
- 1
- Category
- Excise Taxes
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