• Obligations of manufacturers and traders
• Fiscal processing of the guarantee and its allocation in the invoice
• Mandatory information on product labeling in SGR packaging
• Contribution to the Environmental Fund

Starting from November 30, 2023, the system of guarantee of return (SGR) also starts to work in Romania according to the provisions of the national law. In fact, this is the date from which consumers will pay a guarantee of 0.50 lei when buying a bottled drink and, after emptying the packaging, hand it in at a return point organized by traders to receive the amount of the guarantee originally paid. .

The SGR for single-use primary packaging was created with the idea of ​​encouraging recycling and efficient management of packaging waste by both the public and companies. The system is applicable to single-use primary packaging made of glass, plastic or metal from 0.1 L to 3 L inclusive, which is used for beer, beer mixes, mixed spirits, cider, other fermented drinks, juices, nectars, soft drinks. beverages, mineral waters and drinking waters of any kind, wines and strong alcoholic beverages, which must be marked with a special label.

From a legislative point of view, manufacturers, importers and traders of packaged products were required to participate in the system of collection and recycling of single-use primary packaging, and minimum annual targets for the return of SGR packaging were established. In Romania, this system is regulated by Government Decree no. 1074/2021 on the establishment of a guarantee-return system for single-use primary packaging (published in MO 955/06.10.2021), which establishes the necessary rules for the implementation of the SGR for single-use primary packaging, which applies to both products. produced on the national territory and imported or purchased within the Community.

“In the context of Romania, approximately 38% of abandoned waste is represented by plastic, glass and metal waste, and considering that the EU Directive 62/94/ on packaging and packaging waste foresees the possibility of organizing return systems with the help of member states, a legal basis has emerged for the organization of this system return guarantee. The aim of this system is to collect packaging from the market and introduce it into the circular economy, as well as to improve the quality of the environment, helping Romania to meet national collection and recycling targets set at the European level.– said Daniela Neagoe, senior manager of global trade at EY Romania.

The SGR mechanism and the tax regime of the guarantee

The guarantee must be clearly indicated in the tax documents, namely in the invoice or tax receipt. Romanian law does not provide for a special tax treatment applicable to the SGR guarantee. There are provisions whereby packaging that is exchanged between a supplier and a customer without being invoiced is not subject to VAT. On the other hand, packaging that circulates through invoices is subject to VAT.

“Given the fact that we currently do not have a specific provision in the Fiscal Code that determines whether the guarantee related to the SGR packaging falls within the scope of VAT, we believe that it would be appropriate for the tax authorities to clarify this aspect, and also the treatment that applies to non-refundable guarantees, namely whether VAT should be charged in the case of non-refundable guarantees. Separately, we also pay attention to other consequences generated by the return guarantee system, especially with regard to accounting registration, allocation in the SAF-T report, as well as interaction with the electronic invoicing standard.”explains Cinziana Radu, Manager of Indirect Taxes at EY Romania.

Obligations of producers

Pursuant to the above statutory provisions, manufacturers must comply with a number of reporting, record-keeping and labeling obligations, such as:

• concluding a contract with the SGR administrator, RetuRO;
• packaging reporting in a computer program provided by RetuRO;
• keeping records of products by type of material, mass and volume, as well as accounting for guarantees and transferring them to RetuRO by the 10th of the following month;
• payment of the warranty cost by the 25th of the following month after the RetuRO products are placed on the market;
• marking products with a representative SGR symbol and an EAN code containing certain information.

Obligations of merchants

According to the legislation, traders also have a number of obligations, the most important of which are:

• concluding a contract with the SGR administrator;
• packaging reporting in a computer program provided by the SGR administrator;
• keeping records of the total number of products sold in SGR packaging, broken down by types of products;
• indication of the value of the guarantee on the shelf and in fiscal documents;
• paying the cost of the guarantee to the economic operators from whom they buy the packaged products, and returning the cost of the guarantee when returning the SGR packaging.

Traders will be able to sell products only from manufacturers registered in SGR or from distributors of these manufacturers.

“Products presented on the national market in SGR packaging, as defined in Government Resolution No. 1.074/2021, will be identified by new unique digital structures intended for placement, sale, collection and processing through the SGR. In addition to this EAN barcode, produced according to the specifications provided by the SGR Administrator, the representative symbol established by order no. 1802/2023 on approval of the symbol indicating membership in the return guarantee system“, said Adriana Nedelescu, senior consultant of the international trade department of EY Romania.

Contribution to the Environmental Fund related to SGR packaging

From 01.01.2024, according to the draft amendments to GEO No. 196/2005 on the Ecological Fund, business entities that introduce single-use primary packaging subject to SGR to the national market must pay contributions to the Ecological Fund.

For the difference between the amount of single-use primary packaging that meets the minimum annual return targets (65% for 2024) and the amount of single-use packaging actually returned, a fee of 0.5 lei will be paid for metal packaging and 1 lei (double guarantee) for glass and plastic packaging.

Taking into account the very short time until the implementation of this system, companies are advised to start establishing the internal procedures necessary for the implementation of SGR at company level as soon as possible, also taking into account aspects such as:

• flows regarding the warranty scheme and packaging of products subject to SGR;
• management of loss/destruction of SGR packaging;
• labeling of products subject to SGR in the light of new requirements (eg EAN icon and code);
• accounting records related to the guarantee, administrative fee, management fee;
• fiscal processing of the guarantee, its allocation in the invoice in various situations (for example, products provided free of charge);
• identifying products subject to SGR can sometimes be difficult, especially in the case of composite packaging;
• preparation of SGR packaging waste collection points;
• compliance with the waste disposal regime.

Article supported by EY Romania