VATupdate

EU will implement a non-recycled plastic packaging waste tax as of Jan 1, 2021. What are the EU Member States doing?

Extract out of the EU Coronavirus recovery package

As a first step, a new own resource will be introduced and apply as of 1 January 2021 composed of a share of revenues from a national contribution calculated on the weight of nonrecycled plastic packaging waste with a call rate of EUR 0.80 per kilogram with a mechanism to avoid excessively regressive impact on national contributions.

Comments: A national contribution calculated on the weight of non-recycled plastic packaging waste was first suggested by the Commission in 2018. This was partly to fill the gap left by the UK’s impending exit. The estimates then were that if EU governments paid 80 cents per kilogram of non-recycled plastic packaging waste this could total EUR 7bn per year to the budget. No figures appear to have been quoted in the latest proposals.

See also EU coronavirus recovery package new taxes – VAT-based own resources, nonrecycled plastic packaging waste tax, carbon border adjustment mechanism and a digital levy

Updates from the EU Member States

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