Binding rulings clarify scope of new plastic packaging tax

Spain’s tax authorities have issued 18 binding rulings on the new special tax on non-reusable plastic packaging (PPT) that came into effect on January 1, 2023. The PPT applies to packaging containing plastic, regardless of whether the packaging is empty or used to contain, protect, handle, distribute or display goods to be used in the Spanish market. The taxable amount is the quantity (expressed in kilograms) of non-reusable plastic, and the tax rate is EUR 0.45 per kilogram. Several exemptions from the PPT are available. The rulings clarify that artificial casing used in the manufacturing of sausages and plastic caps used for closing brick containers fall within the scope of the PPT, while plastic pods/capsules used for coffee machines that are integral to holding the product fall within an exemption to the PPT. The tax authorities have also confirmed that where a Spanish food packaging company purchases non-reusable plastic containers from a Spanish manufacturing company and then sells the packaged products to customers, the manufacturing company rather than the packaging company is the taxpayer, but the packaging company must comply with certain PPT obligations. More rulings are likely to be issued in the coming months.

Source BDO

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