These changes are revolutionary for entrepreneurs considering that the proposed amendments may entail new financial burdens for entities in many sectors
Tomasz Kassel, Partner, Tax & Legal
The Ministry of Climate presented the assumptions for the project of changes in so-called Extended Producer Responsibility (‘EPR’). As announced, detailed provisions in this regard are to be presented in March/April 2020. The complete regulation is to be implemented by the end of June 2020 and to take effect from 1 July 2020. These deadlines do not remain merely indicative, but are obligatory as the new legislation implements EU directives.
The new system is in fact to be based on two mechanisms:
Fee mechanism
According to the assumptions of the project, two new types of fees will be introduced:
- The first kind of fee will apply to products in packaging for domestic use, which will be paid to the marshal's offices.
- The second one applies in practice to all other kinds of packaged products placed on the market and will be paid for the organisation of the EPR. At the moment the details of the frequency of the reporting and fees are not yet known.
Deposit mechanism
This mechanism will apply to selected types of packaging. Of course, these are just assumptions. Nevertheless, they show the basics of the future system.
It should be indicated that:
- Deposit mechanism concerns everyone who imports or makes intra-Community acquisitions but also everyone who produces packaged products on the territory of Poland. In practice, such entities are easy to identify, as they are usually the ones who settle the VAT on imports or intra-Community acquisitions. It is worth noting that this subject will also affect foreign entities (registered for VAT purposes in Poland) that only import certain products and sell them later. It is very common practice that on behalf of these entities, environmental obligations are performed by Polish contractors (which is considered by the tax authorities as an incorrect approach).
- Deposit mechanism applies to any product in packaging that is imported or produced in the territory of Poland. It is not a mechanism intended exclusively for plastic and glass bottles or cartons. In practice, the packaging can be anything that comes with the product.
In practice, this will create a completely new system that will aim to make the Green New Deal work.
In our view, it is worthwhile to start preparations in this regard from now on by identifying the areas that will need to be adapted to the upcoming changes.
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