Current status

At present, certain non-alcoholic beverages classified under CN code 2202, in which the mass share of fruit, vegetable, or fruit-and-vegetable juice accounts for at least 20% of the raw material composition, are subject to VAT at 5%.

This applies, in particular, to:

• non-alcoholic substitutes for alcoholic beverages (up to 0.5% alcohol by volume), i.e., beer, wine (including sparkling wine), cider, as well as non-alcoholic beverages based on those products,
• energy drinks, i.e. beverages with added caffeine or taurine.

Such beverages offered as part of catering services (PKWiU 56) are currently subject to an 8% VAT rate.

Scope of the proposed changes

Pursuant the Draft, the VAT rate shall be increased to 23% for, among others:

• grape must,
• beverages containing at least 20% fruit, vegetable or fruit-and-vegetable juice, where such beverages constitute:
• non-alcoholic substitutes for alcoholic beverages covered by CN headings 2203–2208 (beer, wine – including sparkling wine, cider and their mixtures),
• beverages with added caffeine or taurine (energy drinks).

The increase in the VAT rate for these categories of beverages is to apply both to retail sales and to the provision of catering services – through, inter alia, an amendment to item 17 of Annex No. 10 to the VAT Act.

Effectively, this means that the current reduced rates for the specified categories of beverages (5% in retail and 8% in gastronomy) shall be replaced with the standard 23% VAT rate.

According to the current assumptions, the amended VAT rates shall enter into force as of 1 July 2026.