How to set up the Tax on Non-Alcoholic Beverages scheme (IBNA)?

All items covered by the Tax on Non-Alcoholic Beverages (IBNA) must be configured on the ERP as subject to IEC.

Context

Under the Consumption Tax Code (as specified under the law by the Government Budget for 2017), the Tax on Non-Alcoholic Beverages (IBNA) is applied on the following products:

• Beverages intended for human consumption, containing added sugar or other sweetening matter, falling within CN code 2202;
• Drinks falling under CN codes 2204, 2205, 2206 and 2208, with an alcoholic strength exceeding 0.5% vol. and not exceeding 1.2% vol.;
• Concentrates, in the form of syrup or powder, intended for the preparation, of beverages provided for in the previous points, on the premises of the final consumer or retailer.

The taxable unit of non-alcoholic beverages is constituted by the number of hectoliters of finished product and the applicable rates, according to the sugar content may vary between €8.22 and €16.46 per hectoliter.

The operators settle the IBNA when introducing the item for consumption. Generally, introducing the item for consumption means the issue of non-alcoholic beverages from the tax warehouse for later resell or consumption. The non-alcoholic beverages tax warehouse can be for production or storage.

Additionally, there are scenarios in which the circulation of non-alcoholic beverages can be performed in a tax suspension scheme. This scheme consists, in practice, in delaying the IBNA settlement when introducing for consumption and can occur when the circulation of non-alcoholic beverages occurs between the tax warehouse and:

• Another tax warehouse;
• Recorded recipient;
• Another Member State;
• Issue Customs Office.

The IBNA is not applicable to purchases, except when the entity is a Recorded Recipient that must settle the IBNA when purchasing.

Configure scheme

The Tax on Non-Alcoholic Beverages (IBNA) is regulated on section II, chapter I of part II of the Consumption Taxes Code.

The items subject to IBNA must be configured on the item file as subject to IEC. To perform this configuration, follow these steps:

1. On the field Tax Type, select the option Tax on non-Alcoholic Beverages;
2. Fill in the corresponding IEC Value and the measurement Unit;
3. In Category for the Statement, place the code BN10 and Non-Alcoholic Beverages w/ Added Sugar.

In the scenarios in which the non-alcoholic beverages circulate in a IBNA suspension scheme, the entity file must be configured as IEC Exempt.

In sales, there are scenarios in which the customer can assume one of the specified types:

• Tax Warehouse --> Tax Warehouse;
• Tax Warehouse --> Recorded Recipient;
• Tax Warehouse --> Customs Office.

In purchases, there are scenarios in which the supplier can assume one of the following specified types:

• Tax Warehouse --> Tax Warehouse;
• Tax Warehouse --> Recorded Recipient.