Italian Customs and Revenue Agencies confirm Plastic Packaging Tax deferral

30th November 2022

Charlotte Davies

The Italian authorities officially confirmed last week, on 22nd of November, the suspension of the Italian plastic packaging tax, until further notice (Council on Minister 5 Press Release 22/11/22). This is not the first time the tax has been postponed, with Covid previously causing the delay.

The tax was due to be introduced, under 2020 Italian Budget Law, on 1 January 2023, to reduce the production and consumption of single-use plastic products (known as MACSI – manufatti con singolo impiego translated as products with single use). This is part of the wider European strategy for plastics in the circular economy, while financially support Italy’s contribution to the wider EU Plastic Levy.

Taxable products:

The draft legislation outlines a €450 per tonne tax on virgin single use products with the function of containment, production, manipulation or delivery of goods or foodstuff, comprised of totally or partially organic polymers of synthetic origin e.g., plastic bottles, plastic bags, tetra packs. The tax will also be applied to semi-finished packaging but exclude products designed for long term use. Italian customs and revenue agencies have also confirmed a number of exemptions, including single-use plastics which are compostable, contain recycled content or are used to contain medical substances or devices.

Taxable parties:
  1. The manufacturer,
  2. The Seller,
  3. The purchaser if the items are brought from other EU countries and sold for business activities,
  4. The EU supplier, if the items are brought from other EU countries and sold to a private consumer,
  5. The importer.
Other key tax considerations:
  • Like within the UK depending on supply chain, plastic packaging tax is not due or can be reimbursed for MACSI which are due to exported or transferred to other EU countries.
  • The plastic tax is expected to be reported and paid through quarterly submissions to Italy’s customs and revenue agencies.
  • For entities not established within Italy, they will need to appoint an Italian tax representative who will have joint and several liability.
How can businesses prepare?

Businesses should endeavour to develop their packaging component database to ensure substantial packaging information such as component level packaging weight, material category and recycled content is accessible and regularly updated through communication with suppliers. This will not only benefit businesses for plastic tax developments but also for wider Extended Producer Responsibilities. Similarly, like for UK plastic packaging tax, ensuring transparency on product movements such as import, or exports will support future tax returns.

Our Plastic Packaging Tax Impact Assessment service is designed to support liable businesses with understanding the effects the tax will have on their business, including financial, data and reporting aspects. You will also gain expert recommendations on mitigation options available to your business to reduce the impacts and manage your liability

For further information on European Developments of the Plastic Packaging Tax as well as an update on the UK tax, register on our upcoming webinar;

The UK Plastic Packaging Tax and European developments – keep your business informed into 2023!

Wednesday 25 January at 10am

Click here to register your FREE place!

Comply Direct have supported many companies navigate the plastic packaging tax. If you would like support, please don’t hesitate to get in touch with solutions@complydirect.com to find the right service for you.