Packaging reporting – packaging excise and excise declaration

From May 1, 2023, the obligation to submit a packaging circulation report came into force in Estonia. In addition to achieving a reduction in single-use plastic, the aim of the law is to ensure that more packaging ends up in circulation as material – to encourage recycling.

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The regulation concerns companies that, due to economic activity, bring packaged goods into the country or pack and sell goods in Estonia. Previously, the Packaging Act concerned larger companies that put more than 100 kg of plastic packaging or 200 kg of other material on the market annually, with which they were obliged to submit a packaging report.

From May 2023, all e-shops, importers, wholesalers, as well as bars-cafes and restaurants that pack and sell food, even as takeaway, have this obligation. In addition to importers and manufacturers, smaller businesses have also been affected, such as packaged food products sold through Wolt, Bolt and Fudy applications, or clothing items sold in an online store and sent to customers, food supplements or other packaged goods.

When a company submits a report on packaging circulation to Pakendirkus, they are obliged to collect and recycle an average of 60% of the packaging. In the event that the packaging placed on the Estonian market has not been collected and recycled, and the packaging company does not have an agreement with a recycling organization to transfer its obligations, it must pay packaging excise duty.

To pay the packaging excise duty, a declaration must be submitted in the e-Tax Office environment (e-MTA) by selecting – TAXES – EXCISE DUTIES – EXCISE DECLARATION – PACKAGING EXCISE. In the future, select the year and quarter for which the declaration will be submitted. The taxation period is quarterly, therefore the quantities must be reported quarterly. Despite the submission of the packaging excise declaration and the payment of the excise duty, the quantities of packaging waste placed on the market must also be submitted to the Packaging Register. This must be done no later than September 1 for the previous calendar year.

Even if the company does not pay packing material fees, this function can calculate packing material weight statistics.

Settings to be made in Microsoft Dynamics 365 Finance & Supply Chain Management:

  • In the parameters of inventory and warehouse management, set up the calculation of fees for packaging materials;
  • Setting up packaging groups (one or more packaging units) and assigning them to Products;
  • Setting packaging material codes for types of packaging material (e.g. plastic, metal, wood);
  • Setting of packaging material fees according to packaging material codes and time periods;
  • Assignment of packaging material codes and fees to Products.

Microsoft Dynamics 365 Finance & Supply Chain Management capabilities – the standard includes the accounting of packaging materials related to sales, the OIXIO supplement package related to purchases:

1. Packaging material weights and charges are calculated per sales order and purchase order lines.

2. Entries for packaging materials are calculated for sales orders and purchase orders.

3. Printing packaging material weights on sales invoices and purchase invoices.

4. Packaging material weight reports – periodically for sales and purchases.

5. Packaging material fee reports – periodically per material type.

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