Italy postpones Sugar Tax

• The effective date of the Sugar Tax has been postponed from July 1, 2025, to January 1, 2026.
• The Sugar Tax applies to the consumption of sweetened non-alcoholic beverages.
• Companies must prepare for compliance with the existing Ministerial Decree, which outlines declaration, payment, and accounting requirements.
• Companies should assess the financial impact and operational adjustments needed to accommodate the new tax regulations starting in 2026.

Executive summary

The Council of Ministers, at its meeting on 20 June 2025, made official a new postponement of the tax on the consumption of sweetened non-alcoholic beverages, known as the "Sugar Tax," introduced by Law No. 160 of 27/12/2019 (Budget Law 2020).

The entry into force of the tax, previously set for 1 July 2025, is postponed until 1 January 2026.

Detailed discussion

In the session of 20 June 2025, the Council of Ministers approved the Decree-Law introducing urgent provisions for financing economic activities and enterprises, as well as interventions of a social nature and in the field of infrastructure, transport and territorial authorities.

Article 7 of the Decree-Law extends the effective date of the Sugar Tax, i.e., the tax on the consumption of soft drinks (referred to as "sweetened drinks") until 1 January 2026.

Although the Sugar Tax has been postponed, it is important to remember that the implementing Ministerial Decree of 12 May 2021 has already been issued. This decree regulates the procedures and requirements for implementing the Sugar Tax, including:

• The content of the declaration to be submitted by the obliged parties
• The procedures for paying the tax
• The accounting requirements that must be fulfilled by the obliged parties
• The modalities for the transmission, also by telematic means, of the accounting data
• The modalities for issuing the notices of payment
• The requirements for ascertaining, verifying and controlling the tax
• The accompanying documentation for the products subjected to the tax
• The installation of instruments for measuring the quantities of sweetened beverages produced or packaged

Implications

It is expected that the Sugar Tax will be applicable from January 1, 2026. The postponement of the entry into force of the Sugar Tax will allow operators more time to reorganize their supply chain to comply with the obligations that will be introduced once the tax becomes effective. Currently, it would be helpful for companies to map their business sectors to identify the potential financial impact of the tax on the flow of goods. This would help them manage their future reporting obligations and compliance requirements, as well as identify areas that could lessen the impact of the Sugar Tax.