A new environmental product fee refund option,

the extended producer responsibility scheme will be amended again

Buyers can reclaim the product fee previously paid. Favourable product fee advance payment rules.

Under a recent amendment to the law, taxpayers who have opted to pay the environmental product charge on the basis of the date of purchase of the goods may reclaim the amount of the product charge paid on goods subject to the EPC liability before 1st of July 2023 when placing the goods on the domestic circulation after 1st of July 2023 - if the Extended Producer Responsibility Fee (EPR) has been verified to have been paid at the time of placing on domestic circulation - and the paid EPC fee is the same as the EPR fee verified to have been paid.

Another important change is that in 2023, unlike in the past, the fourth quarterly advance payment will no longer be determined on the basis of 80% of the average of the previous three quarters, but will be paid on 80% of the product fee paid in the third quarter of 2023, taking into account the amount paid on the basis of a self-assessment or a supplementary return submitted for that period.

The extended producer responsibility scheme has again been amended. The most relevant aspects of the Government Regulation are summarized below

1.  Establishment of liability on the basis of stockholding

In addition to domestic circulation and captive use, the draft also introduces a new element in the EPR system, namely stockholding, as a basis for payment of the extended producer responsibility fee, which could mean administrative simplification for both the EPR and the on Environmental Product Charge. Those opting for the stockholding obligation will be charged on the basis of the quantity taken into stock rather than the quantity placed on domestic circulation. An important difference is that for the product charge, the choice of stockholding is subject to declaration, whereas for the EPR it can be choose without declaration. The other important difference is that the choice of stockholding cannot be changed within a given year for the product charge, whereas for the EPR the tax payer can change quarterly, and an inventory must be taken when changing.

2.  Liability for recyclable packaging materials

Until now, only reusable packaging returned from abroad owned by a domestic entity could have been exempted from the EPR fee.

The draft adds to this provision the additional requirement that the "exemption" applies if the reusable packaging concerned has been included in the waste management authority's register of reusable packaging and the extended producer responsibility fee has been paid before.

The proposal sets out additional cases where no extended producer responsibility fee for reusable packaging will be payable:

• reusable packaging which is part of packaging imported from abroad
• separating the reusable packaging used in the rental system from the goods
• for the placing in domestic circulation of packaging made from reusable packaging included in the reusable packaging register of the waste management authority.

3.  Self-revision

The draft would give tax payers the possibility to correct their data subsequently, until March 31 of the following year.

4.  Other Changes

• The assumption of liability is extended.

If the amendments are adopted, not only car manufacturers but also farmers' organizations will be able to enter into an assumption contract. In case of assumption by a car manufacturer, the manufacturer is entitled to apply a flat rate.

• Customer’s declaration

Under the government regulation, the extended producer responsibility fee will not be payable if the purchaser of the circular product declares that it sells at least sixty percent of the circular products purchased to abroad. The proposal introduces additional requirements on the content of the declaration and simplifies administration. Under the draft, it would also be possible to apply the so-called customer's declaration for frying oils.

• Collection and transport packaging of medicines

According to the proposed amendment, packaging that comes into direct contact with a medicinal product (consumer packaging) is not considered to be a circular product and therefore does not incur an extended producer responsibility obligation. However, in case of consumer packaging, the obligated party may be subject to an EPC fee.

• Technical changes

The draft contains a number of technical amendments, including with regard to fee codes, KF codes, mandatory elements of the take-over contract and the date on which the obligation arises.

30 June, 2023

If you have any further questions regarding the information in this newsletter, please do not hesitate to contact our tax experts.

This newsletter provides general information and does not constitute advice.