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Tax on non-reusable plastic containers

ÍNDICE

On April 9 this year, Law 7/2022, of April 8, on waste and contaminated soils for a circular economy, announced a new tax, the special tax on non-reusable plastic packaging. It will come into force on 01 January 2023.

 

What does it consist of?

This is an indirect tax, the aim of which is to reduce the use of non-reusable plastic packaging. Thus, this tax is levied on the use in Spanish territory of non-reusable packaging containing plastic, whether it is empty or whether it is used to contain, protect, handle, distribute and present goods.

 

Taxable event

The taxable event for this tax is the manufacture, importation or intra-Community acquisition of non-reusable packaging containing plastic insofar as it is designed to contain, protect, handle, distribute and present goods.

In addition, it also includes such packaging and products containing plastics intended to enable them to be closed, marketed or presented.

To take a simple example, in the case of a juice company, both the non-recycled plastic of the juice bottle and the non-recycled plastic used to group several bottles of juice, as well as the non-recycled plastic used as packaging for the pallets for the distribution of these bottles, would be subject to the tax.

 

Non-subject cases to taxation:

This tax includes cases of non-taxation, i.e., those operations whose performance will not entail the obligation to pay tax. The following circumstances are envisaged:

  • The manufacture, importation or intra-Community acquisition of paints, inks, lacquers and adhesives designed to be incorporated into taxable products.
  • The manufacture, importation or intra-Community acquisition of non-reusable packaging containing plastic that is not designed to be delivered together with the goods.
  • Manufacture for delivery outside Spain.
  • Loss or destruction prior to the accrual of the tax.
  • Finally, it should be noted that all recycled plastic is not included in the tax base. For these purposes, accreditation will be required by means of the corresponding Certificate.

 

Exemptions:

Among the different cases of exemption, we could highlight the following:

1. Sanitary

The manufacture, importation or intra-Community acquisition of non-reusable packaging and semi-finished products containing plastics intended to provide the containment, protection, handling, distribution and presentation of medicines, medical devices, foodstuffs for special medical purposes, infant formulae for hospital use or hazardous waste of medical origin.

2. Agriculture and stockbreeding

The manufacture, importation or intra-Community acquisition of plastic rolls used in silage bales of fodder or cereals for agricultural or livestock use.

3. Others

Finally, intra-Community acquisitions are also exempt if, prior to the end of the tax filing deadline, they are sent outside Spanish territory, or if they are no longer suitable for use, or have been destroyed.

In any case, imports and intra-Community acquisitions that do not exceed 5 kilograms in weight in one month are exempt.

Impact of the tax

In the case of being a manufacturer of products subject to the tax, and these products are marketed in Spanish territory, the tax must be passed on with the sales or deliveries made. This charge shall be made by means of an invoice stating, separately, the tax due, the kilograms of non-recycled plastic contained in the product and whether any exemption applies.

In the event of incorrect entry of the required data on the invoice or certificate, the obligor incurs a specific serious tax infringement punishable with a fixed fine of 75 euros per invoice or certificate issued with an incorrect entry.

 

Tax calculation

The calculation of the tax will take into account the following:

  • Taxable amount: The taxable amount shall be the quantity of non-recycled plastic, expressed in kilograms. The amount declared must be certified by the manufacturer.
  • Tax rate: a fixed rate of 0.45 euros per kilogram of plastic is established.

The tax will be paid quarterly or monthly (depending on the obligation to file periodic returns for other taxes). At the date of publication of this article, the official form for the declaration and settlement of the tax is pending publication, although the electronic format of form 592 has been made available at the electronic headquarters.

 

Accessory obligations

It is important to note that taxpayers must comply with the following obligations:

  • They must be registered in a territorial register and will be assigned a CIP (Plastic Identification Code) number (with some exceptions).
  • They must keep accounts of the products obtained and those who make intra-Community acquisitions must keep a stock book.
  • The amount of recycled plastic contained in the products that form part of the tax must be certified by an entity accredited to issue certification under the UNE-EN- 15343:2008 standard.

 

Sanctioning regime

Finally, it is important to mention that in the event of non-compliance, there is a serious system of infringements and penalties. The penalties are gradual depending on the amount derived from each infringement, with a minimum penalty of 1,000 euros. The infringements are as follows:

 

Tax infringements

Fine

Failure to register in the territorial register of the special tax on non-reusable plastic packaging. The penalty shall be a fixed fine of 1,000 euros.
Failure to appoint a representative by the taxpayers not established in said territory.
False or incorrect certification by the duly accredited entity of the amount of recycled plastic, expressed in kilograms, contained in the products that are part of the target scope of the tax. The penalty shall be a proportional fine of 50% of the amount of the tax payments that may have been missed, with a minimum amount of 1,000 euros. The corresponding penalty will be increased by 25% if there is repeated commission of tax infringements.
Undue enjoyment by purchasers of products falling within the scope of the tax benefits because they are not the actual destination of the products. The penalty shall be a proportional fine of 150% of the tax benefit unduly enjoyed, with a minimum amount of 1,000 euros.
The incorrect entry on the invoice or on the certificate of the compulsory particulars on the occasion of sales or supplies of the products subject to tax within the territorial scope of application of the tax. A fixed fine of 75 euros shall be imposed for each invoice or certificate issued with the incorrect entry of the compulsory data on the occasion of sales or deliveries of products subject to the tax in the territorial scope of application of the tax.
Failure to keep or maintain the accounts, books and records required by tax regulations, the computer programs and files that support them and the coding systems used. A fine of 1% proportional to the INCN in the fiscal year to which the infraction refers, with a minimum of 600 euros, will be imposed.

Therefore, it is of utmost importance to analyze each particular situation. As stated above, it is a tax with a wide impact, as it will not only affect manufacturing companies, but also any intra-Community purchaser and importer of plastic packaging.

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