Situation: In the case of an ABC SRL company, VAT payer, what is the VAT regime for the sale of metal, plastic and paper waste to the waste collectors? Is the 2% environmental tax paid? Where are these transactions declared in D300 and D394?
Solutie:
Solution: According to the Emergency Ordinance OUG 196/2005 on the Environmental Fund, article 9, the revenues of the Environmental Fund consist of a contribution of 2% of the revenues from the sale of waste, obtained by the owner of the waste, natural or legal person.
The amounts are withheld at the source by the economic operators that carry out activities of waste collection and/ or capitalization, which have the obligation to transfer them to the Environmental Fund;
*) Revenues to the Environmental Fund, consisting of the contribution of 2% of the revenues from the sale of waste, obtained by the owner of the waste, natural or legal person (3% of revenues from the sale of ferrous and non-ferrous scrap, obtained by the waste generator, natural or legal person), regulated by article 9 paragraph (1) letter a) of OUG no. 196/2005 regarding the Environmental Fund, approved with modifications and completions by Law no. 105/2006, with subsequent amendments and completions, does not constitute a fiscal obligation within the meaning of article 2 paragraph (1) letter e) and article 9 of Law no. 241/2005 for preventing and combating tax evasion, with subsequent amendments.
Thus, in the situation of selling waste, the legal entities that draw up the invoice, have only the obligation to highlight the 2% contribution.
We consider that the value of the invoice related to the sold waste should not be reduced by 2% because the obligation to calculate, withhold, declare and transfer the 2% contribution to the Environmental Fund belongs to the collecting company.
In addition, it should be noted that, although the environmental tax is highlighted separately on the invoice, it is included in the VAT tax base.
We emphasize the fact that the obligation to pay this contribution occurs only once and only in case of sale of waste to persons who have the quality of collector/capitalizer.
Thus, the contribution from the revenues from the sale of waste is withheld by withholding at source by economic operators that carry out activities of collection and/or recovery of waste, which have the obligation to declare it and transfer it to the Environmental Fund until 25 including the month following the month in which the activity took place.
The sale of waste to the collection/recovery unit, with the distinct highlighting in the invoice of the 2% quota representing the Environmental Fund is registered:
4111 Clients = 703 Revenues from the sale of residual products
Collection of the invoice, less the share of 2% of the incomes realized by the waste holding unit representing the amount necessary for the establishment of the Environmental Fund, according to the law. The difference between the total value of the invoice and the share withheld at source at the source by the collecting unit is recorded at expenses:
% = 4111 “Clients” Total, invoice
5121 „Bank accounts in lei” value of the invoice issued, less the share of 2%
652 „Expenditure on environmental protection” share of 2%
The fiscal code expressly stipulates that on the invoices issued for the deliveries of goods and services covered by the reverse charge, the suppliers/providers do not enter the related collected tax. The beneficiaries are the ones who determine the VAT, the tax being highlighted in the statement as the collected tax and the deductible tax.
Given that both the supplier and the beneficiary are persons registered for VAT purposes, then the seller of waste will invoice without VAT, and the beneficiary will make reverse charge (Article 331 of the Fiscal Code) for the following types of waste:
– ferrous and non-ferrous waste, of ferrous and non-ferrous scrap, including semi-finished products resulting from their processing, manufacture, or smelting;
– residues and other recyclable materials made of ferrous and non-ferrous metals, their alloys, slag, ash, and industrial residues containing metals or their alloys;
– waste of recyclable materials and used recyclable materials consisting of paper, cardboard, textile, cables, rubber, plastic, shards of glass, and glass.
In the case of other categories of waste as well as in sales to individuals / non-VAT payers, the normal taxation regime will be applied.
We specify that in the VAT return (code 300), the sale of ferrous waste in reverse charge is declared at line 13.
In D394 it is therefore declared in the cartridge C allocated to the invoices issued to persons registered for VAT purposes (partner type 1), with the symbol V for deliveries of goods/services for which the reverse charge is applied.
Sales to non-VAT payers are declared at line 9 D300, D394 section D.
Legal basis:
– Emergency Ordinance (OUG) no. 196/2005 regarding the Environmental Fund, with the subsequent modifications and completions; – Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Fiscal Procedure Code (approved by Law no. 207/2015, published in the Official Gazette no. 547 of 23.07.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016).