In accordance with the requirements of Law 7/2022 of April 8, 2022, enacted in Spain, as of January 1, 2023, Spain began to impose a tax on plastics for non-reusable packaging, which involves the producer, the importer, and the internal inter-community (intra-community) purchases, and is an indirect tax (excise tax) aimed at environmental protection and is designed to internalize in the price of the final product the environmental costs associated with the manufacture and consumption of plastic packaging.
On June 5, 2023, the Spanish Tax Administration issued a new binding regulation (No. V1534-23) confirming that the amount of the Spanish plastics tax should be included in the taxable base of intra-EU purchase transactions.
1. Introduction to the Spanish plastic tax
At the request of the European Union and as part of Law 7/2022, enacted on April 8, Spain has put into practice a tax on plastics. The Spanish plastics tax is broader in scope and aims to tax the following "non-reusable" plastics.
(1) Non-reusable plastic containers
(2) Plastic semi-finished products used to produce non-reusable plastic packaging
(3) Plastic products used to close, trade or display non-reusable containers.
Some products are duty-free or zero-rated. Examples include plastic packaging for medicines and other items related to health care and hospital use; plastic packaging sent outside Spanish territory; imported products that are to be destroyed or are not fully usable, and non-reusable plastic packaging weighing no more than 5 kilograms per month, in the case of intra-Community small-volume purchases and imports.
However, even in the case of tax exemptions or zero-rating, there is still a formal obligation.
In addition, Spain has established a system of deductions and refunds to avoid double taxation and to ensure the application of the tax exemptions described in the Act.
(Note: Indirect tax on non-reusable containers filled with plastic, whether empty or containing, protecting, handling, distributing and displaying a product)
2. Taxable behavior
The Spanish plastics tax applies to the following transactions involving the aforementioned non-reusable plastic packaging.
(1) Manufacture or production of plastics within the scope. In this case, the tax point rule occurs at the time of first delivery or supply to the buyer. In the case of advance payment, the tax is due when all or part of the price is actually received.
(2) Acquisition of plastic products within the Community. The tax shall be paid by the fifteenth day of the month following the month in which the transportation begins, or at the time of invoicing, whichever occurs first.
(3) Importation of plastics. Plastics tax is due at the time of import declaration, coinciding with the payment of customs duties. Please see the official information regarding taxes on imported plastics.
(4) Introducing these products into Spanish territory in violation of the law.
The tax base is calculated on the basis of the kilogram weight of the non-reusable plastics in the scope at a rate of 0.45 €/kg; the quantity of non-reusable plastics to be taxed needs to be certified by a third party.
3. Who pays the plastic tax
In general, self-employed persons and companies that are producers, intra-Community acquirers or importers are subject to the plastics tax.
Foreign taxpayers subject to the Spanish plastics tax must appoint a Spanish representative before paying the tax for the first time.
Taxpayers producing products within the Community or purchasing products within the Community must submit plastic tax returns every month or quarter, following the same filing period as the regular VAT returns. Importers must pay the tax at customs.
Taxpayers subject to the Spanish plastics tax must be registered in the Special Register for the Plastics Tax by January 30, 2023 at the latest.
In addition, the Spanish plastics tax has an impact on the invoicing requirements: the producer must indicate on the invoice the amount of tax payable, the weight of the plastic subject to tax or, where a tax exemption applies, the legal terms of that exemption. In addition, in other cases, acquirers should require their suppliers to indicate similar data on the certificates or invoices received.
4. Accounting obligations
Finally, there are accounting obligations related to the Spanish plastic tax:
(1) Producers must keep accounting records of the products produced and the materials used in their production.
(2) Intra-Community acquirers must keep a register of products.
(3) The electronic accounting records of inventories must be made available to the Spanish Tax Administration within one month of the end of the reporting period.
