Plastic Packaging Tax (PPT)
Our specialist team will guide you through the complex world of Plastic Packaging Tax (PPT).
These companies are inspired by our VAT, Import and Export duties service
What is it?
Plastic Packaging Tax (PPT) came into force on the 1st April 2022.
PPT is a tax on the supply or importation of packaging products which comprises of less than 30% recycled plastic. It is designed to make plastic recycling more attractive.
Where the tax applies, it will be levied at £200 per tonne of taxable plastic packaging.
Who does PPT affect?
PPT registration is required if either:
– it is expected that more than 10 tonnes of plastic packaging will be manufactured or imported in the following 30 days, or;
– more than 10 tonnes of plastic packaging have been manufactured or imported in the previous 12 months.
Given the importation trigger point, many businesses could have an obligation to register for PPT even if they do not see themselves as operating in the plastics sector.
What you need to do
As with other environmental taxes, much of the complexity is in the detailed processes for the registered businesses. Xeinadin PPT experts recommend that anyone concerned should:
– identify sources of plastic packaging by liaising with manufacturers, logistics and purchasing teams
– estimate as accurately as possible the weight of plastic material you may import into the UK from suppliers and manufacturers
– review purchase contracts and terms of delivery from suppliers to consider the potential impact of PPT if it applies
– consider if PPT will have an impact on income values
If PPT is applicable, businesses need to establish suitable methods to identify taxable products, their PPT values, and PPT return calculation processes necessary to ensure all VAT returns are submitted and paid on time.