Coca-Cola FEMSA pays a wide range of taxes
Coca Cola FEMSA explained that all the countries where it operates, except Panama, impose a value added tax on the sale of soft drinks.
Taxes vary with a rate of 16.0% in Mexico, 12.0% in Guatemala, 15.0% in Nicaragua, an average percentage of 15.9% in Costa Rica, 19.0% in Colombia, 21.0% in Argentina and 22.0% in Uruguay.
Specifically in Brazil, Coca-Cola FEMSA pays 16.0% in the state of Paraná, 17.0% in the states of Goias and Santa Catarina, 18.0% in the states of São Paulo, Minas Gerais, and Rio de Janeiro, and 20.0% in the states from Mato Grosso do Sul and Rio Grande do Sul.
The states of Rio de Janeiro, Minas Gerais and Paraná also charge an additional 2.0% on sales as a contribution to a poverty eradication fund.
At the same time, in Brazil, the value added tax is accumulated and added, together with the federal sales tax, on a taxable basis.
In addition, Coca-Cola FEMSA is responsible for collecting and collecting the value added tax from each of its retailers in Brazil, according to the average retail prices of each state where it operates, defined mainly through a survey conducted by the government of each state, which in 2019 represented for the company an average tax of approximately 17.6% on net sales.
Coca-Cola FEMSA, other contributions
Several of the countries where the company operates impose excise or other taxes, as follows:
It imposes a consumption tax of Ps.1.2616 per liter on the production, sale and import of beverages with added sugar and HFCS as of January 1, 2020 (until December 31, 2019, the consumption tax was Ps.1.17 per liter).
This special tax applies only to the first sale and we are responsible for collecting and collecting it. The consumption tax will be subject to annual increases based on the inflation figures of the previous year as of January 1, 2021.
It sets a consumption tax of 0.18 cents in local currency ($ 0.44 as of December 31, 2019) per liter of soft drink.
It charges a specific tax on non-alcoholic bottled beverages based on the combination of packaging and flavor, currently assessed at 19.44 colones ($ 0.64 as of December 31, 2019) per 250 ml, and a special tax currently assessed at 6,783 colones (approximately Ps .0.22 to December 31, 2019) for 250 ml.
From January 1, 2020, a tax of 13.0% applies to beverages, except water (before March 1, 2019, the special tax was 9.0% and from March 1, 2019 to December 31, 2019 the consumption tax was 11.0%), and the municipalities impose a 1.0% tax on our Nicaraguan gross income.
Until November 17, 2019, it imposed a 5.0% excise tax on carbonated beverages and imported non-carbonated beverages and a 10.0% excise tax on syrups, powders, and concentrates used to produce sugary beverages.
On November 18, 2019, Panama replaced that special tax with a 7.0% special tax on carbonated drinks with more than 7.5 grams of sugar or any caloric sweetener per 100 ml, and a 10.0% tax on syrups, powders and concentrates used to produce sugary drinks.
Since January 1, 2020, Panama imposes a consumption tax of 5.0% on non-carbonated beverages with more than 7.5 grams of sugar or any caloric sweetener per 100 ml, whether imported or produced locally. Beverages derived from dairy products, grains or cereals, nectars, fruit and vegetable juices with natural fruit concentrates are exempt from this tax.
It imposes a special tax of 8.7% on soft drinks containing less than 5.0% of lemon juice or less than 10.0% of fruit juice, and a consumption tax of 4.2% on water with gas and soft drinks flavored with 10.0% or more of fruit juice, although This special tax does not apply to some of our products.
Evaluates an average production tax of approximately 4.2% and an average sales tax of approximately 12.1% on net sales.
Except for wholesale sales, these production and sales taxes apply only to the first sale, and we are responsible for collecting and collecting these taxes from each of our retailers.
For wholesale sales, you have the right to recover the sales tax and collect this tax again by reselling our products to retailers.
The municipalities of Colombia apply a sales tax that varies between 0.35% and 1.2% of net sales.
It imposes a consumption tax of 19.0% on carbonated beverages, a consumption tax of 12.0% on beverages that contain less than 5.0% lemon juice or less than 10.0% fruit juice, and a consumption tax of 8.0 % on sparkling water and still water.