Deposit Refund System in Poland
Starting from 2025, European Union law imposes new obligations on those involved in achieving higher levels of selective collection of packaging waste and the inclusion of recyclable materials in new single-use plastic packaging.
The way to meet these obligations from 2025 onward is to implement a deposit refund system, which will collect only three types of used beverage containers:
- Reusable glass bottles up to 1.5 litres,
- Single-use plastic bottles up to 3 litres, including their caps and closures, and
- Metal cans up to 1 litre.
This poses significant financial and logistical challenges that await entrepreneurs in the coming years.
According to the already adopted regulations, the deposit refund system is intended to be nationwide and unparalleled, to be organized independently by entrepreneurs. This means that entrepreneurs must establish and finance the operation of a deposit refund system operator or join such an operator (by signing an agreement). Polish regulations allow for multiple operators to run the deposit refund system.
The preparation of the logistics for the deposit refund system is a lengthy and complex process. In general, smaller stores will be required to collect deposits, while larger ones will be responsible for collecting used containers from consumers. This is just a fraction of the complex logistics that must be organized to launch the deposit refund system.
A current challenge is expanding the competencies and knowledge of entrepreneurs about how the deposit refund system will operate, especially the specific legal and tax obligations and burdens that await individual companies and within what timeframe.
To facilitate your preparations for the implementation of the deposit refund system and ensure the correct operation within it, as well as proper tax accounting for related economic events, we offer comprehensive legal support (Osborne Clarke Law Firm) and tax support (MDDP) within your industry in the following areas:
- Preparation for the implementation of the deposit refund system,
- Implementation of obligations arising from participation in the deposit refund system,
- Ongoing operation within the deposit refund system.
- Beverage producers
Legal and Tax Challenges for the Beverage Industry
The beverage industry includes those introducing beverages to the market in various types of packaging (including non-alcoholic, alcoholic, milk, etc.), including their producers and importers.
The new regulations will particularly affect the beverage industry, as only three types of used beverage containers will be subject to the selective collection system (including alcoholic, non-alcoholic, and milk containers). It's worth noting that other packaging introduced to the market, such as single-use glass bottles and liquid food cartons, will not be subject to a deposit and will not be collected within the system.
For those introducing containers covered by the system, they must decide whether to invest in building a deposit refund system operator (become a shareholder of the operator as a joint-stock company) or join such an operator by signing an agreement later on.
It is crucial to analyse the costs associated not only with joining an operator but also with fulfilling other legal obligations, including those related to labelling, packaging, recyclable material acquisition, new logistics for reusable bottles collected in the system for refill.
What we offer:
Deposit refund system - How will it work? - General legal and tax training (basic level)
Deposit refund system roadmap - Key responsibilities for your company (advanced level, workshops) Legal and tax advisory for deposit refund system operators Ongoing legal and tax support related to participation in the deposit refund system
- Stores
Logistical Revolution for Stores and Consumers
The second market segment facing significant logistical challenges is stores and retail chains. Smaller stores will participate in the system by mandatory deposit collection, which they will then need to settle with the operator
Although only units with over 200 m2 of sales space will be mandatory participants in collecting used containers, the experiences of other countries show that smaller stores will also want to participate in such a return system.
Stores planning to collect used containers must start planning the layout of waste and packaging infrastructure, ensuring compliance with building, spatial, and occupational safety regulations, among others. They need to check property titles and any required environmental permits.
It is also essential to determine how to qualify tax-deductible costs for implementing the deposit refund system, settling deposits with the operator, covering expenses for container and packaging waste collection, introducing a logistics system for selective container and packaging waste collection, and covering the costs of maintaining and servicing the record-keeping required by law.What we offer:
- Deposit refund system - How will it work? - General legal and tax training (basic level)
- Deposit refund system roadmap - Key responsibilities for your company (advanced level, workshops)
- Compliance DRS - Can you safely collect containers and packaging waste in your store (within the deposit refund system)?
- Ongoing legal and tax support related to participation in the deposit refund system
- Consumer Education - What obligations do stores have?
- Other entrepreneurs
Challenges Associated with the Deposit Refund System Are Not Limited to Beverage Producers and Stores.
It is worth noting that there is a wide range of companies that do not have a legal obligation but would like to participate in the deposit refund system, such as gas stations, municipalities, large multi-sector stores, and more.
The second group includes entrepreneurs involved in the logistics of the deposit refund system, especially manufacturers of equipment, technological infrastructure, and IT, as well as transportation companies and other entities operating in the field of packaging waste or packaging.
What we offer:
- Deposit refund system - How will it work? - General legal and tax training (basic level)
- Ongoing legal and tax support related to planned participation in the deposit refund system
- Compliance DRS - What to do to participate safely in the deposit refund system
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