Ruling on Healthy Taxes

First, the Tax Authority is asked whether the taxes for industrially ultra - processed food products and/or those with a high content of added sugars, sodium or saturated fats that do not exceed the values of sodium, sugars and saturated fats established in the Law.

• The Tax Authority states that in accordance with Article 513 - 6 of the Tax Code, only ultra -processed food products that have added sugars, salt/sodium and/or fats as ingredients and whose content in the nutritional table exceeds the following values will be subject to this tax:

 Likewise, Tax Authority was asked whether the manufacturer of the inputs or ingredients used to manufacture the ultra-processed sweetened beverages (including concentrates, powders, and syrups) or the industrially ultra - processed edible products and/or with a high content of added sugars, sodium or saturated fats will be liable for IBUA or ICUI.

In this sense, the Tax Authority established that:

• The producers and importers of ultra - processed sweetened beverages and industrially ultra - processed edible products are responsible for the health taxes.
• It should be noted that health taxes are only levied on goods whose headings and subheadings are expressly indicated in the Law.
• Therefore, the manufacturer of the inputs or ingredients used to manufacture the products subject to such taxes is not liable for the health taxes.
• The above, unless such inputs per se, correspond to ultra - processed sweetened beverages or industrially ultra - processed edible products and/or with a high content of added sugars, sodium or saturated fats.

On the other hand, it is asked whether IBUA and ICUI are deductible for the importer of ultra -processed sweetened beverages (including concentrates, powders and syrups) and ultra -processed edible products industrially and/or with a high content of added sugars, sodium or saturated fats.

In this regard, the Tax Authority replies that:

• Section 513 - 5 and 513 - 10 of Tax Code establish that the payment of healthy taxes constitutes for the buyer a deductible cost in the income tax as a greater value of the good.
• In the importation, as it also constitutes a tax generating fact, the importer may deduct in his income tax the health taxes in the same terms established by the above - mentioned regulations.

Finally, it is questioned whether the IBUA and ICUI are levied on goods taxed and/or excluded from VAT.

The Tax Authority states:

• Healthy taxes have their own structural elements.
• The same sale or import could be subject to health taxes as well as VAT.
• In the case of the national consumption tax, one of its generating facts is the service of food and beverage vending, food services under contract, including catering service, and the service of food and alcoholic beverage vending, according to the provisions of articles 426, 512 - 8, 512 - 9, 512 - 10, 512 - 11, 512 - 12 and 512 - 13 of the Tax Code.