07 Apr What are Plastic Tax and Sugar Tax?
These are two new taxes that will go into effect on July 1, 2021 and January 1, 2022, respectively.
Plastic Tax refers to a tax designed to reduce the consumption or production of plastics. Usually, the target of these taxes are the so-called “disposable” plastics, i.e. non-recyclable or non-biodegradable, considered harmful to the environment as a source of pollution.
At the same time, the Sugar Tax is designed to reduce the consumption of drinks with a high sugar content. The drinks subject to a tax of this kind are usually soft drinks with added C02, such as sports drinks and energy drinks.
Focus on PLASTIC TAX
The Plastic Tax applies to the consumption of single-use plastic items (“MACSI”) used for the containment, protection, handling, or delivery of goods or food products; MACSI are single-use plastic plates, cutlery, and cups, pouches, tetra-pak bottles and containers, film, and all items designed, engineered, and sold to be used only once in their life cycle. Exceptions are compostable products (compliant with UNI EN 13432:2002) or the result of recycling, medical devices and medicine containers.
The tax will be equal to 45 € for each kilogram of plastic (nothing is due if the tax is equal to or less than 10 euros). It will have to be paid through F24 form with the possibility of compensation with other taxes and contributions and, in case of non-due payment, it will be possible to ask for reimbursement within two years from the date of payment, under penalty of forfeiture.
Plastic Tax: subjects liable for tax
Tax payers are identified on the basis of the origin of the MACSI.
- MANUFACTURER or CLIENT: if made in Italy (the manufacturer is not considered a manufacturer who produces manufactured goods using as raw material or semi-finished products other MACSI on which the tax is due by another subject)
- BUYER ‘TRADER’: if they come from EU countries
- SELLER: if they come from EU countries and the final consumer buys them.
- IMPORTER: if they come from non-EU countries.
The plastic tax becomes due at the time of release for consumption (sale or purchase). Of course, the tax is not due when the MACSI manufactured in Italy cross the national borders.
Plastic Tax: fulfilments
- Registration and obtaining the identification code
- Prior communication of the activity
- Quarterly declaration to the Customs and Monopolies Agency
- Import customs formalities
Plastic Tax: assessment and facilitations
The Plastic Tax enters the Italian tax system, with its first effects from the first day of the second month following the publication of the provision of the Customs and Monopolies Agency that will define the implementation methods of the rule. The assessment of the new tax will take place on the basis of quarterly declarations submitted by taxpayers to the Customs and Monopolies Agency by the end of the month following the calendar quarter to which the declaration refers. Within the same term it will be necessary to pay the amount due. Officials of the Customs and Monopolies Agency will “monitor” the correctness of the fulfilments. The customs administration, in particular, will also deal with the collection of the tax relating to MACSI coming from non-EU countries.
The Budget Law 2020 grants, to companies producing MACSI, a tax credit in the amount of 10% of the expenses incurred in 2020 for the technological adaptation aimed at the production of compostable products. The credit, recognized up to a maximum amount of 20 thousand euros for each beneficiary (within the overall limit of 30 million euros for 2021), must be used exclusively in compensation.
Focus on SUGAR TAX
Italian Law no. 160/2019 establishes, also based on the experience of other EU countries, the tax on the consumption of sweetened soft drinks. Sweetened beverages in the taxman’s sights are those finished products and those prepared for use after dilution, falling under CN headings 2009 and 2202 of the Combined Nomenclature of the European Union, packaged for sale, intended for human food consumption, obtained by the addition of any substance, of natural or synthetic origin, capable of imparting a sweet taste to beverages and having an alcoholic strength less than or equal to 1.2% by volume. Beverages are exempted from the levy if the total content of sweeteners is less than or equal to 25 grams per liter – for finished products – and 125 grams per kilogram – for products prepared to be used after dilution. In any case, the sweetening power of the substances in question will be established by an interdirectorial decree of the Italian Ministry of Economy and Finance and the Ministry of Health.
It will be equal to 10 euros per hectolitre, in the case of finished products, and 0.25 euros per kilogram, in the case of products prepared for use after dilution.
Sugar Tax: subjects liable for tax
Pay the Sugar Tax at the moment of the transfer of the beverages:
- NATIONAL MANUFACTURER or, if different, the one who provides for the conditioning, i.e. adds the sweetening substances
- BUYER, upon receipt, in the case of sweetened beverages from EU countries
- IMPORTER, in the case of sweetened beverages imported from non-EU countries.
Does not pay the tax, however, the Italian manufacturer who sells the products for consumption in other EU countries or exports them.
Sugar Tax: assessment and benefits
The Sugar Tax will be applied from the first day of the second month following the publication of the decree that will define the implementing procedures of the rule.
Those liable for the tax will have to register with the Customs and Monopolies Agency, which will give them an identification code. They will also have to, within the month following the sales (or purchases) made, submit a monthly declaration and pay the tax due. Also for the Sugar Tax the assessment is delegated to the officials of the Customs and Monopolies Agency.
EDI TRACINGS: HYPOTHESES
GS1 has defined two new tax types. The new values defined are:
- ENV: environmental tax for plastic
- 101: sugar tax
- Within EURITMO, the defined values will be indicated in the TIPOTASS field of the TAX record (detail and summary).
- Within EANCOM, the defined values will be indicated in field 5153 of the TAX record (detail and summary).
TESISQUARE can offer you a consulting service to analyze the impact of the new regulations on your business processes; as a provider, we can also support you in adapting the integration paths to comply with the regulations in a timely manner.