The Isle of Man has delayed the planned introduction of a soft drinks industry levy by one year to April 1, 2019.
The delay has been attributed to difficulties and the cost of introducing a standalone soft drinks levy, for both government and businesses.
The delay is also due to the duty's inclusion on the schedule of common shared duties between the Isle of Man and the UK, requiring UK legislative amendments, which the UK Government is unable to make during 2017/18.
The Isle of Man Treasury says businesses on the island buying soft drinks during 2018/19 should note that purchases from UK suppliers, whilst being treated as "exports" from the UK for the purpose of the UK soft drinks industry levy, may still be charged inclusive of the UK levy. Only those liable in the first instance to the levy in the UK (such as producers, importers, and packagers) will be able to claim a tax credit from HMRC in relation to the export. Whether or not that person decides to pass on the credit to an Isle of Man purchaser will be entirely a commercial decision.
The island's Treasury says information on the introduction of the levy will be made available later this year and published on the Customs and Excise website.
By Courtesy of Lowtax.net
