The Polish Deposit and Return System: a guide to the legal and tax rules

20 May 2025 | Knowledge, News, The Right Focus

The Polish Deposit and Return System launches on 1 October. This is a real revolution for businesses, whether they are producers, importers, distributors or traders. Indeed, its implementation brings with it a number of challenges, including, perhaps less obviously, concerning VAT. Here is a brief guide to the most important issues relating to the Polish Deposit and Return System.

Legal basis and objectives of the Deposit and Return System

The Polish Deposit and Return System is primarily based on the Act on the Management of Packaging and Packaging Waste of 13 June 2013, the Waste Act and numerous implementing ordinances, which regulate, among other things, the deposit amounts, the levels of separate collection, the obligations of operators, entities placing packaging on the market and traders, and the rates and rules for the payment of product fees or the design of labels.

The main objectives of the system are to:

Reduce the amount of packaging waste entering the environment
Promote recycling and a circular economy
Encourage consumers to return packaging and packaging waste through a deposit mechanism
Achieve the packaging collection rates required by the EU (77% between 2025 and 2028 and 90% from 2029)

What packaging is covered by the deposit and return system?

Single-use plastic (PET) beverage bottles up to 3 litres
Aluminium and steel beverage cans up to 1 litre
Reusable glass beverage bottles up to 1.5 litres

All these types of packaging will have to be labelled accordingly.

System participants and their key roles

The deposit and return system involves a number of actors, each with specific roles and responsibilities.

Tabelka EN

Deposit mechanism: how does it work in practice

The deposit is a specific amount charged when a product is sold in packaging covered by the system.

The amount is set by the implementing ordinance.

The deposit per unit of packaging for:

Single-use plastic beverage bottles with a capacity of up to three litres, including their plastic caps and lids, excluding glass or metal beverage bottles with plastic caps and lids, shall be PLN 0.50

Metal cans with a capacity of up to one litre shall be PLN 0.50

Reusable glass bottles with a capacity of up to one and a half litres shall be PLN 1.00

The deposit “follows the product”: It is collected at each stage of distribution – from the company placing the product on the market to the wholesaler, the retailer and the consumer
Return of the deposit: The consumer is refunded the full amount of the deposit when the empty, undamaged packaging (or packaging waste) is returned to a designated collection point (usually a shop)
Deposit and product price: Importantly, the amount of the deposit is not included in the VAT base of the product price

Placing on the market vs. sale

These are two different concepts, which also have different implications with regard to the deposit and return system:

Placing on the market: This is the first making available of a packaging or a packaged product on the territory of a country (domestic production, import, ICA) for use or distribution
Sale: This is the seller’s obligation to transfer ownership of the goods (packaged product) to the buyer and to deliver the goods, and the buyer’s obligation to collect the goods and pay the price to the seller.

The mere physical placing of packaging on the domestic market does not in itself give rise to an obligation to collect a deposit. This obligation arises when a product is sold in packaging covered by the deposit and return system.

Tax aspects of the Polish Deposit and Return System – challenges and solutions

Businesses have many questions and concerns about tax issues, especially VAT.

Deposit and VAT – key principles

Deposit charged on the sale of a product: as mentioned above, the deposit does not increase the VAT base of the product itself, being treated as an amount not subject to VAT at the time it is collected
VAT on unreturned deposits: This is a more complex situation. The deposit on packaging that has not been returned by consumers, i.e. the deposit that has not been refunded to them, is subject to VAT:
- The company that places the packaged products on the market is the VAT payer
- The operator of the deposit and return system is the VAT remitter

VAT settlement and tax records:

- The operator (remitter) calculates the difference between the value of the deposits on packaging placed on the market and the deposits on packaging returned during the calendar year. On the basis of this difference, the operator remits the VAT due to the tax office. The deadline for payment is 31 January of the year following the settlement year
- The entity placing packaged products on the market (taxable person) increases the tax base in its VAT return (JPK_V7) for the first tax period of the year following the year to which the deposit settlement relates by the amount of the difference between the deposit on the packaging placed on the market and the deposit on the packaging returned during the calendar year in question
- Both entities are required to record the data necessary to establish the tax base and to keep it for a period of 5 years from the end of the year for which the tax base is established, resulting from the difference between the value of the deposit collected for packaging covered by the deposit and return system and placed on the market in that year and the value of the deposit refunded for packaging or packaging waste covered by the system in that year.
- As a result, the rules are unclear as to whether VAT should actually be charged only on deposits that are not returned. According to the literal wording of some of the provisions, the difference between the value of the deposit on packaging placed on the market and on packaging returned in a given calendar year should be taken into account, although placing on the market does not necessarily imply sale and collection of the deposit.

Recording, reporting and checking

Tax records are not the only record-keeping requirement under the deposit and return system. The system requires participants to fulfil other record-keeping and reporting obligations.

Entity placing packaging on the market: Must keep detailed electronic records of, inter alia, the number, type and value of deposits collected for packaging placed on the market and the number, type and value of deposits refunded for packaging returned in a given year. These records must be kept for 5 years
Operator of a deposit and return system: Should also keep detailed records of packaging collected, deposits refunded and waste sent for recycling. The operator should submit annual reports to the province marshal (marszałek województwa) (by 15 March) and to the head of a commune (wójt) or mayor (burmistrz or prezydent miasta) (by 31 January).
Commercial entities (collection points): Also required to keep records of deposits collected and refunded and of packaging collected

Polish Deposit and Return System – what else to consider

There are concerns that by undercutting rates, operators will try to pass on some of the costs of running the system (e.g. the handling fee) to wholesalers and shops. The problem is the lack of precise rules in this regard.

Another important issue is the financing of the refund of the deposit by shops. Retailers will have to refund the deposit to consumers “in advance”, and settlements with the operator will be made on a monthly basis. This means that they will have to temporarily fund the deposit refund from their own resources, which may be problematic for smaller operators.

Implementing the system also requires extensive preparation: adapting IT systems, logistics, accounting, training staff and informing customers. The selection of an operator and the negotiation of contract terms will be key.

Summary

The Polish Deposit and Return System is an ambitious project with the potential to make a real difference to the environment. However, its success depends on the seamless functioning of all its components, including clear and workable tax settlement rules.

Our recommendations to companies

Analyse now how a deposit and return system could affect your business
Allow time to adapt your IT, accounting and logistics systems
Monitor the process – bear in mind that individual implementing regulations may change
Contact potential system operators, ask for quotes and carefully consider the terms and conditions of cooperation
If you have any doubts about taxation, consider applying for an advance tax ruling, either yourself or with the help of specialists

The implementation of a deposit and return system is a dynamic process that is constantly changing, so keep up to date and seek expert assistance.

Any questions? Contact us

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