Italy’s plastic tax, initially proposed in the Budget Law for fiscal year (FY) 2020 and expected to come into effect on July 1, 2024, after several postponements, is expected to be postponed again, this time until July 1, 2026. Aimed at reducing the production and consumption of single-use plastic products, its implementation signifies a significant step towards sustainability and circular economy principles.
KEY POINTS
Taxable Persons:
- Tax liabilities vary based on the origin and distribution of single-use plastic products (MACSI).
- Manufacturers, importers, and sellers are subject to the tax, depending on the country of production or shipment.
Products Subject to Tax:
- The tax applies to MACSI made entirely or partially of synthetic organic polymers, excluding products designed for repeated use or specific exemptions.
- Covered items include bottles, bags, food containers, packaging, and similar plastic-based products.
Taxable Event and Amount:
- The tax obligation arises at the time of release for consumption.
- Tax rate is set at €0.45 per kilogram of virgin plastic used in MACSI.
Who is liable, generally:
- For MACSI manufactured in Italy: manufacturers.
- For MACSI shipped from other EU Member States: the acquirer.
- For MACSI shipped from non-EU countries: the importer.
Plastic Tax Compliance:
- Taxpayers must register, maintain accounting records, file quarterly returns, and store MACSI separately.
- Non-established entities may need to appoint a tax representative for compliance purposes.
- For MACSI coming from non-EU countries, the tax is assessed and collected by the Italian customs authorities at the time of importation.
- If the amount of plastic tax does not exceed 25 EUR, there are no payment or compliance obligations.
- Customs authorities are responsible to administer tax.
Penalties:
- Failure to pay the tax incurs penalties ranging from two to five times the unpaid amount, with minimum fines specified.
- Late payment or filing results in additional administrative penalties.
Refunds:
- Subject to certain conditions and traceability requirements, refunds may apply for MACSI destined for consumption outside Italy or for export.
- Refunds are permissible for amounts exceeding €10.
SOURCES:
