Situation: An ABC SRL company purchases large quantities of scrap metal from a VAT paying company (XYZ) that deals with the collection and recycling of waste. He will then sell this waste to a customer. What are ABC’s environmental obligations?
Solution:
The obligation to calculate, to withhold at source, to declare and transfer to the Environmental Fund the contribution of 3% of the revenues realized from the sale of ferrous and non-ferrous metal waste belongs to the economic operators collectors and / authorized supervisors, according to the legislation. in force, including waste traders who do not physically take possession of them, registered according to Order no. 739/2017 on the approval of the Procedure for registration of economic operators that are not subject to environmental authorization according to the provisions of Law no. 211/2011 on the waste regime.
The sale of ferrous and non-ferrous metallic waste to the economic operators is made by the waste generators, based on the invoice, with the distinct highlighting of the 3% contribution and with its retention by the buyer.
The sale of ferrous and non-ferrous metal waste to economic operators is done by waste generators, individuals, based on the purchase slip / invoice / receipt and payment certificate, withholding the 3% contribution to the payment of the amount due to the waste seller.
The category of collecting and / or capitalizing economic operators also includes waste traders who physically take possession of them, authorized according to the Order of the Minister of Environment and Sustainable Development no. 1798/2007 for approving the Procedure for issuing the environmental permit, with subsequent amendments and completions .
The economic operators mentioned above have the obligation to declare and transfer the 3% contribution to the Environmental Fund until the 25th of the month following the month in which the activity took place.
In the situation where the revenues from the sale of ferrous and non-ferrous metal waste are made by the waste generators, natural or legal persons, who do not have the quality of collector and / or capitalists authorized under the law, including waste traders who do not physically take possession of these, the calculation basis to which the 3% contribution is applied represents the sale value of ferrous and non-ferrous metallic waste to the economic operators, excluding the value added tax.
Thus, the economic operators that carry out activities of collection and / or capitalization of the waste that become owners of ferrous and non-ferrous metallic waste coming from activities of production, dismantling and / or scrapping of goods, fixed means or inventory objects own or become own by acquisition, have the obligation to pay the contribution of 3% to the Environmental Fund.
The obligation to register in the National Register of economic operators that carry out activities on the Romanian territory and are not subject to the environmental authorization, drawn up by the National Agency for Environmental Protection, belongs to the following economic operators:
- economic operators that transport non-hazardous waste in the professional system; – traders who do not physically take possession of waste or brokers;
- economic operators that are subject to derogations from the authorization requirements
Economic operators that carry out wholesale activities of waste and scrap without physically entering into their possession and hold an environmental permit on the date of entry into force of the Order approving the Registration Procedure, are required that, within 30 working days of on the date of entry into force of this order, to notify the competent authorities for environmental protection and to request the registration.
The economic operators that carry out other activities than the above are not registered in the Register, these being subject to the authorization procedure according to the provisions of the Order of the Minister of Environment and Sustainable Development no. 1798/2007 for approving the Procedure for issuing the environmental authorization subsequent additions.
The documents required for registration are:
1) the application for registration / renewal of the registration in the Register of economic operators that are not subject to environmental authorization according to the provisions of Law no. 211/2011 on the waste regime, republished, with subsequent amendments and completions, according to the model provided in annex no. 1 to this procedure;
2) the registration certificate at the National Office of the Trade Register, in a copy conforming to the original, or the equivalent documents issued by other states, translated into Romanian by an authorized translator;
3) the statement on one’s own responsibility (Annex no. 2 to the procedure);
4) proof of payment of the tariff
The registration number in the Register is assigned within 30 days from the submission of the complete documentation and is valid for 5 years.
Accounting monograph (for the company that sells iron waste):
-aquisition of waste from a legal entity:
301 “Raw materials” / 371 “Goods” = 401
- – reverse charge is made (at the time of purchase) provided that both the seller and the beneficiary are registered for VAT purposes:
4426 „Deductible VAT” = 4427 „VAT collected”
setting up the 3% environmental fund:
401 „Providers ”= 447.environment funds „Special funds – taxes and assimilated payments”
- payment of the supplier, less with the value of the environmental fund due:
401 „Providers ” = 5121 „Bank accounts in lei ”
- declaring and paying the 3% contribution to the environmental fund:
- environment funds („pecial funds – taxes and assimilated payments”) = 5121 „Bank accounts in lei ”
- sale of waste:
- a) to persons registered for VAT purposes:
4111 „Clients”= 707 „Income from sale of goods”/701 „Revenues from the sale of finished products”
- b) to persons not registered for VAT purposes:
4111/461 = % 707 „Income from sale of goods”
or 701 „Revenues from the sale of finished products”
4427
(701 the waste is processed and then sold)
5121 „Bank accounts in lei ” = 4111 „Clients” – less with the 3% tax withheld by the operator you are selling to
6588 „Other operating expenses” = 4111 „Clients” with 3%.
Expenditure on goods
” = 371 „Goods”, discharge.
Declaration:
Acquisitions with reverse charge are declared in D300 at rd.12 and rd.27 and in D394 in section C. In the VAT return (code 300), the sale of ferrous waste in reverse charge is declared at line 13, and in Declaration 394 it will be reported in section C (the number of invoices and the tax base are reported).
Legal basis:
– Order MM 739/2017 on the approval of the Procedure for registration of economic operators that are not subject to environmental authorization according to the provisions of Law no. 211/2011 on the waste regime;
– Emergency Ordinance 196/2005 on the Environmental Fund, with subsequent amendments and completions;
– Order MM1503 / 2017 regarding the modification and completion of the Order of the Minister of Environment and Water Management no. 578/2006 for the approval of the Methodology for calculating the contributions and taxes due to the Environmental Fund.