Spanish Plastic Tax Faq
Hebe Newnam
Companies placing non-recycled, non-reusable plastic packaging onto the Spanish market must pay a tax outlined in the Spanish Law 7/2022[1]. If a product contains certified recycled content, a company can apply for the tax exemption. During the transition period, the use of self-declarations was allowed. However, an accredited, third-party certification of recycled content is mandatory as from January 2024. RecyClass certifications[2] are an example of audit schemes that companies can use to apply for this exemption.
RecyClass proposes two complementary audit schemes that certify the material along the entire value chain. The RecyClass Recycling Process Certification serves as a verification of the origin of waste for the recycled input material used in manufacturing of new articles. On the other hand, the Recycled Plastics Traceability Certification verifies the use of recycled plastics in production in any operation along the entire plastics value chain.
These certifications are based on the requirements of EN 15343 and are evaluated according to the European co-operation for Accreditation EA-1/22 A-AB: 2023. The positive evaluations of both Schemes allow Certification Bodies to apply for accreditation in line with ISO 17065.
The above-mentioned characteristics of RecyClass Certifications are also the requirements that are lined out in the legal text describing the means to demonstrate the use of recycled plastics, needed for the tax exemption.
RecyClass Certification is carried out by third-party, accredited certification bodies which include: Kiwa-IVAC[3], DQS Greece[4] and Kiwa Nederland B.V.[5]. Additionally, the list of all RecyClass-certified companies is available publicly[6].
Besides benefiting from the tax exemption in Spain, RecyClass-certified companies boost transparency on the market. Their certificate serves as a testament to their reliability as a supplier and verifies that recycled plastics suppliers operate in line with environmentally sound processes.
RecyClass is a non-profit, cross-industry initiative advancing recyclability, bringing transparency to the origin of plastic waste and establishing a harmonized approach toward recycled plastic calculation & traceability in Europe. RecyClass develops Recyclability Evaluation Protocols and scientific testing methods for innovative plastic packaging materials which serve as the base for the Design for Recycling Guidelines and the RecyClass Online Tool. RecyClass established Recyclability Certifications for plastic packaging, Recycling Process Certification and Recycled Plastics Traceability Certification for plastic products.
Spanish special tax on non-reusable packaging plastics came into force in January 2023. The tax is defined as an indirect tax on the use of non-reusable containers that contain plastic, whether they are empty or containing, protecting, handling, distributing and presenting a product.
To clarify some of the questions that have been around since this new tax entered into force, Marosa held a webinar about the Spanish tax on non-reusable plastic packaging. If you missed it, no worries!
Finally, the Spanish tax authorities released a Frequently Asked Questions article to clarify some major areas about the new tax. We have translated and explain some of these questions in English, you will find this in the section below. Finally, you can also find the official general guidelines of the tax here.
Some examples of products falling within the scope of the tax are applicators for cosmetic products (e.g. the mascara brushes forming part of the closure of the packaging), trays to contain and protect foodstuffs (e.g., for sliced and baked goods, ready meals, fruit, meat, fish, etc.), plastic bags and plastic sacks (e.g., food freezer bags), plastic rings that group units of a pack (such as beverage cans), packaging tape, packaging film. There is an extensive list included on the FAQ published by the tax authorities.
A manufacturing company makes an intra-Community acquisition or importation of a semi-finished product for the purpose of transforming it into non-reusable plastic packaging. Considering that the tax is already due for the first acquisition or importation operation, is the manufacture of the final packaging also subject to taxation?
In this case, the taxable event occurs with the intra-Community acquisition or importation of the semi-finished product. If in the territory of application of the tax the 'manufacturer' does not add any further plastic elements to the semi-finished products, the taxable event of manufacture does not occur.
The amount of recycled plastic contained in the products subject to the tax must be certified by an authorized entity to issue the corresponding certification. Temporarily, during the 12 months following the application of the tax, on January 1, 2023, it will also be possible to prove the amount of non-recycled plastic contained in the products subject to the tax by means of a responsible declaration signed by the manufacturer.
If you are a taxpayer not established in Spanish territory, you are obliged to appoint a representative before the Tax Administration in relation to your obligations for this tax. The appointment must be made before performing the first taxable transaction.
The Plastic Tax is an indirect tax levied on the use in Spain of non-reusable packaging containing plastic, irrespective of whether the packaging is empty or if is used to contain, protect, handle, distribute or display goods. It taxes the amount of non-recycled plastic used in non-reusable plastic packaging, expressed in kilograms, when the packaging is delivered, either through its sale by the manufacturer, an intra-EU acquisition, or by importation. Consequently, the plastic contained in goods does not trigger the Plastic Tax because it only applies to packaging.
The tax rate is EUR 0.45 per kilogram of non-recycled plastic and is levied on the manufacturing, importation or intra-EU acquisition of the following products: non-reusable packaging containing plastic,semi-finished plastic products to be used to produce non-reusable packaging, and products containing plastic that enable the non-reusable packaging containing plastic to be closed, marketed or presented. The Plastic Tax is also levied when these products are brought into Spain irregularly, which is when the owner, possessor or user of the products cannot evidence if it manufactured, imported or acquired them within the EU.
The Plastic Tax Law provides for a number of exemptions, including: packaging used for medicines, sanitary products, meals for special medical uses and hazardous health waste, products that cannot be used or are to be destroyed, and intra-EU acquisitions and imports of less than five kilograms of non-reusable plastic packaging per month (low-volume operators).
Finally, manufacturers and intra-EU acquirers may seek compensation for the Plastic Tax they have paid and importers and acquirers not considered taxpayers may seek a refund of those amounts in certain scenarios, such as when the packaging products in question end up outside of Spain, are destroyed or are returned.
The main formality that Plastic Tax payers will have to fulfil is filing monthly/quarterly Plastic Tax returns (using form 592) by the 20th of the month following the relevant month /quarter. Importers and purchasers that are not considered taxpayers can seek refunds by filing requests (using form A22) by the 20th of the month following the calendar quarter in which the circumstances entitling them to seek the tax refund took place.
Manufacturers and intra-EU purchasers had to register with the Plastic Tax territorial registry corresponding to their tax domicile or place of business by 30 January 2023 (new operators must register before they start an activity on which the Plastic Tax is levied), unless they handle less than five kilograms of non-reusable plastic packaging per month. Representatives of non-resident taxpayers must register with the Plastic Tax registry before undertaking any transactions on which the Plastic Tax is levied.
In order to calculate the taxable amount and, ultimately, how much Plastic Tax is due, taxpayers must know how much non-recycled plastic is in the non-reusable plastic packaging contained in the shipments they receive. This is clearly a challenge, as this information should be furnished by suppliers who until now did not have to comply with this type of requirement.
While businesses are accustomed to collecting data for tax and other purposes, the data Plastic Tax payers need to collate and record to accurately calculate their Plastic Tax liability is particularly complex and burdensome.
Taxpayers should make sure that they have analysed their product portfolio in detail, identifying potential gaps in terms of data availability, internal processes, and resources, in order to be able to take corrective action promptly. Also, the collected data must be reliable and verifiable, should it be questioned by the Spanish tax authorities.
Content on this Blog is for general information and is not intended to provide legal advice. For further information, please contact the relevant Blog post author or your usual contact at the relevant firm.
On 9 April 2022, the Official State Gazette published Law 7/2022 on Waste and Contaminated Soils (referred to as the Law). The new Law aims to establish the principles of the circular economy, as well as contribute to the fight against climate change and the protection of the marine environment.
Specifically, the Law addresses the obligation for Spain to transpose two European Union (EU) Directives: first, Directive (2018/851) which will modify the Waste Framework Directive and second, the Single-Use Plastics Directive (2019/904), where the purpose is to reduce the environmental impact of certain plastic products.
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