Small taxpayer and the product fee
In the case of entrepreneurs, caring for the natural environment is not only a civic duty, but also savings. It's not just about saving on a non-drip tap or using less printer paper. Entrepreneurs who do not sufficiently fulfill the recycling obligation may be obliged to pay a special fee, referred to as the product fee.
What is the product fee?
The product fee mechanism was regulated in the Act on the obligations of entrepreneurs with regard to the management of certain waste and on the product fee of May 11, 2001. According to this legal act, the product fee should be understood as one that should be calculated and paid in the event of failure to achieve the required level of recovery and recycling (Article 2 (9)).
Waste Act of December 14, 2012
Art. 3 sec. 1
Point 14. Recovery - it means any process the main result of which is that the waste serves a useful application by replacing other materials that would otherwise be used for a given function, or as a result of which the waste is prepared to fulfill that function. in a given establishment or in the economy in general;
Point 23. Recycling - means recovery where waste is reprocessed into products, materials or substances used for the original purpose or other purposes; this includes the reprocessing of organic material (organic recycling) but does not include energy recovery and reprocessing into materials that are to be used as fuels or for backfilling purposes.
The indicated recovery and recycling refer to the type of waste that is generated with products placed by the entrepreneur on the domestic market. Importantly, it is not enough just to introduce mechanisms for the recovery of raw materials in your company. In order to avoid the necessity to pay the product fee, it is necessary to achieve at least the level of recovery and recycling indicated in Annex 4a to the Act.
Product fee - formalities
If the entrepreneur fails to obtain the appropriate level of recovery and recycling in his company, it will be necessary to settle the product fee. The taxpayer has until March 31 of the tax year following the tax year to which the tax will apply to complete the formalities.
Do you run a company and have questions?
Take advantage of the expert advice of the Entrepreneur's Guide
Online advice for businessesHow to determine whether the entrepreneur managed to achieve the minimum level of recycling and recovery specified in the regulations? For this purpose - as indicated in Art. 3 sec. 3 of the Act - multiply the mass of waste resulting from recycled or recovered products by the mass of products placed on the market in the previous calendar year. If the entrepreneur has just started his business in a given tax year, the value of recycled or recovered products is multiplied by the mass of products placed on the market in the year of establishment. The result should be presented as a percentage.
If it turns out that the product fee is nevertheless necessary, the entrepreneur is obliged to submit a report to the competent marshal's office. As previously indicated, the deadline for completing the formalities - including payment of amounts due - expires on March 31. Importantly, the fee does not have to be paid until its value does not exceed PLN 50.
Small taxpayers who keep books of revenues and expenses may include the product fee as tax deductible costs. It is worth paying attention to the tax year in which such costs should be settled. If the taxpayer has opted for the accrual method, the amount of the fee should be included in the costs of the year to which the fee relates. In the case of the cash-based approach, the fee should be charged to costs during the period in which the report is drawn up.
The product fee may be classified as tax deductible costs on the basis of a report submitted to the Marshal's Office.