International Project on the VAT Treatment of Returnable Packaging

Company X purchased such packaging from suppliers in several European countries and subsequently—under various legal arrangements—leased or loaned it to food producers. These producers utilised the packaging for transporting their goods both domestically and across EU Member States. The returnable packaging remained the property of Company X, whose representatives collected it in different EU countries and reintroduced it into circulation.

This business model gives rise to a number of complexities, particularly in relation to VAT across different jurisdictions. These complexities include the tax treatment of intra-EU movements, potential registration obligations, and implications for various payments, including insurance, deposits, and guarantees. The project was aimed at determining the VAT consequences of different methods of making the packaging available in each EU Member State.

As a result, a tax-compliant structure has been established to ensure adherence to the relevant tax and reporting obligations.

Tomasz Michalik (VAT) was responsible for the tax advisory on this project.