Identifying the burden of the value-added/sales tax on the price of the beverages covered is an important component of assessing the total tax burden of those beverages.

The value-added tax (VAT) is a ‘multi-stage’ tax on all consumer goods and services applied proportionally to the price the consumer pays for a product. Although manufacturers and wholesalers also participate in the administration and payment of the tax all along the manufacturing/distribution chain, they are all reimbursed through a tax credit system, so that the only entity who pays in the end is the final consumer.

Most countries that impose a VAT do so on a base that includes any excise tax and customs duty. Example: VAT representing 10% of the retail price.

Some countries, however, impose sales taxes instead. Unlike VAT, sales taxes are generally levied at the point of retail on the total value of goods and services purchased. For the purposes of the report, care was taken to ensure the VAT and/or sales tax shares were computed in accordance with country-specific rules.

Beer

Spirits

Sugar-sweetened carbonated beverage

VAT tax rates reported were converted as a percent of the prices reported for a 330 ml of the internationally comparable brand of sugar-sweetened carbonated beverages, a 330 ml of the most sold brand of beer and a 750 ml of the most sold brand of the most sold type of spirits.

Biennial

Biennial

perucica@who.int

Anne-Marie Perucic

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