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A company has requested clarification on the VAT rate applicable to a natural coconut water drink without added sugars versus one with added sugar. The DGT has ruled that the rate depends on whether the product is classified as a soft drink or a juice, and whether it contains added sugars or sweeteners.
This ruling clarifies the tax treatment for beverage manufacturers and retailers, potentially increasing the VAT burden on products containing added sweeteners or sugars.
The tax team reviews your specific situation.
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