Everything producers should know about the Italian Plastic Tax

The Italian parliament has passed legislation to impose a tax on single-use plastic packaging. After multiple postponements, this new measure is now expected to come into effect from 1 July 2024.

As a result, producers of single-use plastic will have additional responsibilities, including registration, filing tax returns, and paying compliance fees.

Background

In alignment with Directive no. 2019/904/EU, Italy has passed tax laws and established a national system outlined in the Budget Law for the fiscal year 2024, which aims to reduce the production and consumption of single-use plastic products, known as MACSI.

Scope

The upcoming tax applies to single-use plastic products composed entirely or partially from synthetic organic polymers. The range of items covered includes bottles, bags, food containers, packaging, bubble wrap, and similar products composed of plastic materials.

Certain exemptions exist under the new tax legislation. These include products intended for permanent use, medical devices, and those used to store and protect medicines.

Compostable plastic, as per the provisions of DIN EN 13432, as well as plastic sourced from recycling processes, are also not subject to the tax.

Taxable parties

In Italy, obligated parties include:

1. Manufacturers, for MASCI manufactured in Italy
2. Sellers, for any Italian entity, that intends to sell MACSI, produced on its behalf, to other Italian entities
3. Buyers, in cases where the products are purchased from other EU nations and sold for business purposes
4. EU suppliers, if the products are purchased from other EU nations and sold to an individual consumer; and,
5. Importers, for manufactured goods coming from non-EU countries

The tax obligation arises when items are produced, imported into the national territory, or introduced from another European Union country.

Individuals without a formally established entity in Italy must appoint a tax representative, sharing joint liability with the individual or entity.

If the plastic tax amount due remains below €25, no tax return is required, and the associated payment is zero.

Rate

The tax rate is fixed at €0.45 for every kilogram of virgin plastic present in MACSI.

Penalties for non-compliance

Producers failing to comply with plastic tax regulations will face fines and penalties, including a penalty ranging from two to five times the unpaid tax, and a minimum of €250 for non-compliance with producer obligations. Late payments will incur an administrative penalty of 25% of the tax owed, with a minimum of €150. A penalty ranging from €250 to €2,500 is imposed for late submission of quarterly returns.

Next steps…

For further insights into the Italian Plastic Tax, to understand your potential obligations, or to seek assistance from our dedicated team at Valpak, please contact us by emailing [email protected]