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Poland

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VAT regulations on deposits for bottles and cans need to be improved

  • Upcoming Deposit System: The Polish deposit system for managing packaging and packaging waste, initially set to launch earlier, has been postponed to October 2025, as per amendments made by the Act of November 21, 2024. This delay aims to allow for necessary reforms and clarifications in the system’s operations.
  • Complex VAT Settlement Issues: There are concerns regarding the complicated VAT settlement process involving year-end adjustments and the representation of VAT by the representing entities. A proposed alternative is to collect VAT on packaging during each sale, similar to the Swedish model, which simplifies the process by avoiding year-end adjustments.
  • Role of Representing Entities: The new regulations assign the management of the deposit system to representing entities, which must operate transparently and equitably, ensuring fair representation of beverage producers’ interests. Any bias toward large retailers or international corporations could undermine the system’s integrity.
  • Call for Greater Oversight: There are proposals for increased state supervision of the deposit system to prevent potential abuses and ensure fair competition, as concerns grow about privatization leading to undesirable practices within the industry.
  • Consideration for Extended Implementation: Suggestions have been made to further delay the implementation of the deposit system until 2026, allowing more time for legislative adjustments and ensuring that the system operates effectively and fairly for all stakeholders involved.

Source Prawo

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