The Spanish Congress has passed Law 7/2022 of 8 April 2022, which covers tax law on non-reusable plastic packaging and will enter into force on January 1, 2023. The Law intends to encourage the reduction of non-reusable plastic packaging waste as well as the recycling of plastic waste. It also aims to establish the concepts of the circular economy by basic waste regulation, as well as to contribute to climate change mitigation and marine environmental protection.
The new tax has a broad scope, with a tax rate of EUR 0.45 per kg of non-recycled plastic packaging. It is expected to generate around EUR 724 million in revenue for the country annually.
In principle, sole proprietors and businesses that are manufacturers, intra-Community acquirers, or importers of plastic-taxable items. Foreign taxpayers subject to the Spanish plastic tax are required to designate a Spanish representative before engaging in their first taxable activity.
By no later than January 30, 2023, taxpayers subject to the Spanish plastic tax must register in the special register for plastic tax.
The law has several exemptions, including:
For these similar instances, a refund system will be designed to accommodate cases when the tax has already been paid and has to be reimbursed.
It is structured similarly to Italy’s new plastic packaging tax, which is also set to go into force on January 1, 2023. However, there are significant distinctions when compared to the plastic packaging tax that has been in place in the United Kingdom from April 1 this year.
The legislation will go into effect on January 1, 2023, and taxpayers will be required to:
Businesses subject to this tax should evaluate their compliance duties as well as any updates and guidance released by the Spanish Tax Authorities. GVC can help you with your plastic packaging tax compliance. Contact our experts via email!