European Excise Update
4 Eyes Ltd is the UK and Ireland member of the European Excise Association. We are delighted to share our 5th newsletter with a particular focus on Plastic Packaging Tax in the EU and UK.
EUROPEAN EXCISE ASSOCIATION
Newsletter #5
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SINGLE USED PLASTIC - NEW REGULATIONS MEAN NEW RESPONSIBILITIES.
The Polish legislator has imposed a number of obligations on the entrepreneurs introducing products in packaging, including plastic packaging. In particular when carrying out business in Poland – you should most of all pay attention to registration and reporting obligations. The already existing regulations on packaging and the recently passed regulation on single use plastic may pose some challenges and it might be useful to revert to an expert for an advice, in order to avoid costly mistakes.
ITALIAN MACSI AND THE NEVER-ENDING DEFERRING TAX.
Aimed to reducing the consumption of disposable plastic items, the 2020 Italian Budget Law has introduced a new consumption tax that should have come into force in July 2020: since there it has been deferred to January 2021, then postponed to the following year and, again to 2023. The current effective date is January 2024 – who will bet on that?
THE SPANISH COMMITMENT TO THE TAX ON NON-REUSABLE PLASTIC PACKAGING
For the moment, Spain is the only EU state to have introduced this tax, after the Italian Government has put off the date announced on January 1st and postponed its entry into force for one year. (The UK introduced its own Plastic Packaging Tax 1 April 2022).
A very important (and risky) bet by the Spanish Government in terms of environmental taxation, with notable practical problems for Spanish companies.
THE WINDSOR FRAMEWORK AND EXCISE DUTY
On Monday 27 February, the UK and the EU agreed a deal to make changes to the Northern Ireland Protocol to the UK’s Withdrawal Agreement with the EU. The deal is currently going through the ratification process in the UK Parliament: if passed, the deal will likely be quickly ratified by the EU as well. As the deal is principally focussed on trade and safeguard arrangements for internal UK trade with Northern Ireland, with a couple of exceptions we do not anticipate major alterations to processes for trade between Northern Ireland and the EU.
EXCISE REGULATIONS NEWS
EXTENDURE OF EXCISE DUTY REFUND FOR RENTALS WITH DRIVER
With reference to period from 1st of April to 31st of August 2023 a relief will apply to companies supplying – for touristic purposes - coach and bus complying with the Euro 6 Regulation. Companies shall be compliant with the Law 218/2003 regulating the passenger transport activity.
PLASTIC PACKAGING TAX (PPT) UPDATE
As announced in the Spring Budget on 15 March 2023, the penalty regime for PPT returns has now been aligned with that of VAT. This means that penalties start, based on the outstanding amount, on the 16th day that the payment is late, with a 2% penalty immediately due. This increases by a further 2% from day 30. In addition to this, from day 31, there is a further daily penalty equivalent to 4% p.a. of the outstanding balance. It is therefore important that returns are submitted and paid on time to avoid penalties.