Packaged drinks shipped from Vietnam to the United Kingdom may attract the Soft Drinks Industry Levy (SDIL) if they contain added sugar and meet the total-sugar threshold. In November 2026, current bands begin at 5 g and 8 g per 100 ml. The UK importer or first liable business handles the levy, while Vietnamese manufacturers supply formulation data. This covers UK levy obligations, not Vietnam export procedures.
Check whether the drink is liable today
The current test covers packaged ready-to-drink beverages or specified drinks prepared by dilution, generally with no more than 1.2% alcohol by volume. It requires added sugar or a qualifying sugar-containing ingredient, such as honey, and at least 5 g of total sugar per 100 ml in the prepared drink. Total sugar includes naturally occurring sugar once the added-sugar condition is met.
Special rules also cover certain machine-dispensed flavour concentrates. His Majesty's Revenue and Customs (HMRC), chargeable drinks.
A drink made with fruit or vegetable juice without other added sugar is outside the levy even if its natural sugar is high. Existing exclusions include drinks containing at least 75% milk and qualifying milk substitutes, which have specific composition tests. A sweetened ready-to-drink coffee, fruit drink or plant beverage therefore needs a recipe-level assessment, not a decision based on its marketing category. HMRC, exclusions.
Use the rates applying from 1 April 2026
For chargeable drinks, use total sugar in the prepared product to select the band. These are levy amounts, separate from customs duty and value-added tax. Finance Act 2026, section 108.
Sugar content per 100 ml | 2026 levy rate per 10 litres |
|---|---|
Below 5 g | No SDIL, subject to the product test |
At least 5 g but below 8 g | £2.08 |
At least 8 g | £2.78 |
Assign the UK reporting obligation
For imported chargeable drinks, the liable party depends on the first receipt, first sale or release from an eligible warehouse. A UK customer arranging the import may be responsible, while an overseas supplier with a UK presence that arranges delivery can face the obligation instead. Customs importer-of-record status alone does not settle the SDIL answer.
Agree responsibilities against the real supply chain and check the statutory event. Finance Act 2017, sections 33–35 and HMRC, bringing drinks into the UK.
The responsible business must consider registration, quarterly returns and supporting records. HMRC sets registration timing based on when a chargeable import is expected or occurs, and requires records of relevant imported volumes to be kept for six years. A qualifying small-producer exemption requires evidence and does not automatically follow from a supplier's claim. HMRC, registration and HMRC, imported-drink records.
Separate announced changes from current law
Government announcements do not change the November 2026 calculation immediately. Budget 2026 sets out further legislation proposed for Finance Bill 2026–27. Confirm the enacted law again before each future effective date. UK Treasury, Budget 2026 tax measures.
Announced date | Change to plan for, not yet operative in November 2026 |
|---|---|
1 April 2027 | Proposed rates: £2.25 per 10 litres (lower band), £3.01 (higher band). Producer-only registration requirement removed where the business neither packages nor imports liable drinks. |
1 January 2028 | Proposed lower entry threshold of 4.5 g total sugar per 100 ml for qualifying drinks with added sugar. Milk-based drinks with added sugar would lose their current exemption, with a lactose allowance. Milk substitutes with added sugar would also enter scope. |
Plain milk and eligible plant-based substitutes without added sugar remain outside the announced expansion. The 2028 lactose adjustment is not simply a test of total sugar on the nutrition panel. Buyers with sweetened milk coffee or plant-based drinks should ask for ingredient-level evidence now rather than applying the future formula as though it were already law. HMRC, announced changes, updated 28 October 2026.
Build a product-level costing and evidence file
Before pricing a UK order, the buyer and manufacturer should:
- Confirm the finished recipe, added-sugar sources, total sugar per 100 ml and any dilution instructions.
- Check exclusions using product composition, not category names or front-label claims.
- Record the UK recipient, selling party, storage route and first chargeable event.
- Establish whether registration, return filing or small-producer documentation is needed.
- Cost separately under the November 2026 rules and the announced 2027–2028 scenarios.
- Recheck enacted legislation before shipment or reformulation decisions tied to a future date.
Discuss product options with Nam Viet Group: Share your target UK channel, drink category, pack size and sugar specification to discuss formulation choices and the product information your importer may need.
Scope note: This is a UK levy overview for commercial packaged drinks, not a product-specific tax ruling or a guide to customs duties, labeling or Vietnam export filings.
Frequently asked questions
Does giving chargeable drinks away as samples avoid the levy?
Not automatically. HMRC identifies making liable drinks available free of charge as a possible chargeable event. The responsible UK business must review when the event first occurs and avoid reporting the same volume twice. [HMRC, imports and chargeable events](https://www.gov.uk/guidance/bringing-drinks-liable-for-the-soft-drinks-industry-levy-into-the-uk).
Can an importer rely on a claim that a supplier is a small producer?
No. HMRC requires documentary evidence for imported drinks from a qualifying small producer. The UK business must assess the producer conditions and retain the required records, rather than accept an unsupported sales statement. [HMRC, small-producer evidence](https://www.gov.uk/guidance/bringing-drinks-liable-for-the-soft-drinks-industry-levy-into-the-uk).
Will the announced 4.5 g threshold apply to a shipment arriving in 2026?
No. The government has announced 1 January 2028 for that change, subject to the legislation being introduced and completed. Assess a 2026 chargeable event under rules then in force and track subsequent enactment. [HMRC, proposed changes](https://www.gov.uk/government/publications/changes-to-the-soft-drinks-industry-levy/soft-drink-industry-levy-changes).