Consolidated Act on taxes on certain types of packaging, bags, disposable tableware and PVC foils

This is an unofficial translation (please note that only the Danish version has legal validity)

Consolidated Act No. 101 of 13 February 2001

Consolidated Act

on taxes on certain types of packaging, bags,

disposable tableware and PVC foils

This Act hereby consolidates the Act on certain types of packaging and certain paper or plastic bags, etc., cf. Consolidated Act No. 726 of 7 October 1998, as amended by Act No. 912 of 16 December 1998, Section 9 of Act No. 380 of 2 June 1999, Section 23 of Act No. 165 of 15 March 2000, Section 13 of Act No. 1029 of 22 November 2000 and Act No. 1292 of 20 December 2000.

I. Taxable goods

1.^{1) 5)} Tax shall be paid to the Treasury in respect of retail packaging and multipack with a volume of less than 20 litres used for the following goods:

1. Alcohol, wine, fruit wine and beer.

2. Soft drinks, lemonade and other goods to which carbon dioxide has been added and which are classified under positions 2201 and 2202 in the EU's combined nomenclature.

• Soft drinks, lemonade and other goods to which carbon dioxide has not been added and which are classified under positions 2201 and 2202, juice and concentrates used in the manufacture thereof with the exception of vegetable products intended as substitutes for liquid full-cream milk, low-fat milk, skimmed milk and buttermilk, cf. 14) below and nutritional substitutes entitled to subsidy pursuant to Section 8a of the National Health Service Act.
• Water.
• Vinegar and food oils.
• Methylated spirit.
• Soap, washing and cleaning agents, solvents, polish and scouring agents, as well as other goods classified under positions 3401, 3402 and 3405.
• Lubricants and other goods classified under position 3403 as well as goods that are taxable pursuant to the Act on energy taxes on mineral oil products.
• Pesticides that are taxable pursuant to the Act on taxes on pesticides.
• Paints, varnishes, dyes, putty and filler, as well as other goods classified under positions 3208-3210 and 3214.
• Perfume products, cosmetics and toiletries, as well as other goods classified under positions 3303-3307.
• Antifreeze for vehicle radiators and windscreen wash.
• Chemical substances and products encompassed by the Ministry of Environment and Energy Statutory Order No. 734 of 31 July 2000 on classification, packaging, labelling, sale and storage of chemical substances and products.
• Milk and dairy products classified under positions 0401-0403 and 0405, with the exception of liquid full-cream milk, low-fat milk, skimmed milk and buttermilk.
• Margarine and other goods classified under position 1517, as well as spreadable products consisting of a mixture of milk fats and vegetable fats classified under position 2106.
• Dog and cat food classified under position 2309.10.
• Sauces, mustards and other goods classified under position 2103, as well as tomato purée and tomato juice classified under position 2002.

2.⁵⁾--(1) For containers consisting of carton or of laminates of various materials, and which contain goods encompassed by Section 1 nos. 1 and 2, or are approved pursuant to Statutory Order No. 124 of 27 February 1989 on packaging for beer and soft drinks, as most recently amended by Statutory Order No. 300 of 30 April 1997, and which contain goods encompassed by Section 1 nos. 3 and 4, or are encompassed by Section 3 of Statutory Order No. 124 of 27 February 1989 on packaging for beer and soft drinks as most recently amended by Statutory Order No. 300 of 30 April 1997, and which contain goods encompassed by Section 1 nos. 3 and 4, with a declared content of carbon dioxide the tax comprises

(2)⁵⁾ For containers consisting of other materials than those mentioned in Subsection (1), and which contain goods encompassed by Section 1 nos. 1 and 2, or are approved pursuant to Statutory Order No. 124 of 27 February 1989 on packaging for beer and soft drinks, as most recently amended by Statutory Order No. 300 of 30 April 1997, and which contain goods encompassed by Section 1 nos. 3 and 4, or are encompassed by Section 3 of Statutory Order No. 124 of 27 February 1989 on packaging for beer and soft drinks as most recently amended by Statutory Order No. 300 of 30 April 1997, and which contain goods encompassed by Section 1 nos. 3 and 4, with a declared content of carbon dioxide the tax comprises

(3)⁵⁾ In the case of retail packaging and multipack containing goods encompassed by Section 1 nos. 3-17, except for containers encompassed by Section 2 (1) and (2), the tax shall be paid on a weight basis. The respective tax on the various types of packaging is

(4) The taxable weight pursuant to Subsection (3) above encompasses all parts of the packaging. If the packaging is comprised of several materials, the tax is calculated as the sum of the taxes on each individual material. If one material comprises more than 90 percent of the packaging by weight, the tax can be calculated on the basis of the tax for that material and the total weight of the packaging.

(5)⁵⁾ Enterprises are however free to chose to calculate the tax on the combined packaging, including packaging comprised of several materials, on the basis of the constituent material with the highest tax rate and the total weight of the packaging, cf. though Subsection (4) third point.

(6)⁵⁾ If it cannot be documented that the content of secondary material comprises at least 50 percent of packaging mentioned in Subsection (3) nos. 2 and 4, tax shall be paid pursuant to Subsection (3) nos. 1 or 3, respectively.

(7)⁵⁾ If it cannot be documented that the content of filler in packaging mentioned in Subsection (3) no. 5 comprises at least 50 percent, tax shall be paid pursuant to Subsection (3) no. 3.

2a. Tax shall be paid on bags manufactured of paper or plastic, etc. having a volume up to the handle or the suchlike of at least 5 litres.

2b. The tax per kg is:

1) For bags made of paper, etc. DKK 10

2) For bags made of plastic, etc. DKK 22

2 c.--(1)⁵⁾ Tax shall be paid on disposable tableware.

(2) The tax comprises DKK 19.20 per kg.

2 d.--(1)⁵⁾ Tax shall be paid on foils manufactured of pliable polyvinyl chloride (PVC) for packaging of food items.

(2) The tax comprises DKK 20.35 per kg.

II. Registered enterprises

3.--(1)⁵⁾ Persons who with sale in mind manufacture taxable goods encompassed by Section 1 nos. 1-4, Section 2a, Section 2c or Section 2d shall notify their enterprise for registration with the state customs and tax authorities.

(2)⁵⁾ Persons who conduct entrepot trade (wholesale trade) with unused taxable goods encompassed by Section 1 nos. 1-4, or taxable goods encompassed by Section 1 nos. 5-17, Section 2a, Section 2c or Section 2d can notify their enterprise for registration with the state customs and tax authorities.

(3) Enterprises that pack or bottle goods encompassed by Section 1 nos. 1-4, can notify their enterprise for registration.

(4) Enterprises that pack or bottle goods encompassed by Section 1 nos. 5-17, shall notify their enterprise for registration.

(5)⁵⁾ Enterprises encompassed by Subsection (4) who's annual sales of taxable goods corresponds to a tax of under DKK 5,000 do not need to register or to pay the tax, however. Registration is valid for a minimum of 2 years unless the enterprise ceases taxable operations.

(6) Registration can be denied or rescinded if the enterprise's premises are or subsequently become organised in such a manner that control by the state customs and tax authorities pursuant to Section 15 cannot be carried out in an adequate manner.

(7) Enterprises registered under Section 47 (2) of the Value Added Tax Act that sell taxable goods to Denmark from abroad shall register with the state customs and tax authorities pursuant to the present Act.

(8) A certificate shall be issued to registered enterprises as proof of registration.

3a.⁵⁾ Registered enterprises are entitled without immediate settlement of the tax to receive from abroad and from other registered enterprises unused taxable goods encompassed by Section 1 nos. 1-4, and taxable goods encompassed by Section 1 nos. 5-17, Section 2a, Section 2b or Section 2c without immediate settlement of the tax.

3b.--(1)⁵⁾ Upon application, the state customs and tax authorities can grant a registered enterprise permission to have large batches of goods manufactured at the enterprise's expense (contract work) in another registered enterprise (manufacturing enterprise).

(2) Upon application, the state customs and tax authorities can also grant permission for an enterprise that does not commercially manufacture taxable goods to register in cases where the enterprise is the sole distributor of a product that the enterprise has manufactured at its expense (contract work) in another registered enterprise.

III. Calculation of the taxable amount

4.--(1) Registered enterprises shall calculate the taxable amount for a tax period as equivalent to the quantity of taxable goods supplied by the enterprise or the enterprise's consumption of its own unused goods during the period.

(2) The tax period is a calendar month.

5.--(1) From the taxable amount calculated according to Section 4 (1) a deduction is to be made for:

1. Goods that are supplied to another registered enterprise pursuant to Section 3a,

2. Goods that are exported,

3. Goods lost at the enterprise or during transport to or from the enterprise due to fire, damage, or the suchlike,

• Used goods on which the tax has previously been paid,

5. Goods that are returned to the enterprise provided the purchaser is refunded the price of the goods including the tax, and

6. Goods that are exempt from the tax pursuant to Section 6 (1).

(2) The state customs and tax authorities may lay down control regulations for deductions in the taxable amount pursuant to Subsection 1 above.

IV. Tax exemptions and tax refunds

6.--(1)⁵⁾ The state customs and tax authorities may grant permission for an enterprise to purchase export packaging encompassed by Section 1 nos. 1 and 2 free of tax provided it is not subsequently sold in Denmark.

(2)⁵⁾ The state customs and tax authorities may, provided the annual refund amounts to at least DKK 500, grant enterprises that are not registered pursuant to Section 3 a refund of the tax paid on taxable packaging that is exported either unused or containing goods, cf. Section 5 (1) no. 2.

(3)⁵⁾ The state customs and tax authorities may, provided the annual refund amounts to at least DKK 500, grant enterprises that are not registered pursuant to Section 3 a refund of the tax paid on taxable bags, disposable tableware and PVC foil that is exported, cf. Section 5 (1) no. 2.

(4) The state customs and tax authorities may grant enterprises a refund of the tax paid on containers encompassed by Section 1 nos. 1 or 2 that are returned in used form and sold for reuse abroad. A further condition for the refund is that the containers or corresponding containers have been received from abroad and the tax paid on them less than one year before they are returned.

(5) The state customs and tax authorities may also grant a refund of the tax paid on glass containers that have originally contained natural, carbonated mineral water without added carbon dioxide and having a carbon dioxide content of at least 0.4 percent by weight. A condition for the refund is that the bottles in question are recycled for glass production.

(6) Packaging that is filled or in some other way used for packaging of goods encompassed by Section 1 no. 17 at retail outlets with a view to sale to end-users is exempt from the tax.

(7) The state customs and tax authorities stipulate the detailed regulations for tax exemptions and tax refunds pursuant to Subsections 1-6.

V. Tax on goods received from abroad

7.--(1) With taxable goods that are imported from countries outside the EU or from certain areas that are not encompassed by the tax jurisdiction of the EU Country in question the tax shall be paid at the time of import unless the goods are imported pursuant to the regulations in Section 3a. Payment of the tax is to be effected in accordance with the regulations stipulated in Part 4 of the Customs Act, cf. though Subsection (2) below.

(2) In the case of goods imported by an enterprise registered under Section 29 of the Customs Act, the regulations in Section 7a shall also apply.

7a.--(1) In other cases the tax shall be paid in connection with receipt of the goods in Denmark unless the goods are received pursuant to the regulations stipulated in Section 3a. Prior to the dispatch of the goods from abroad, commercial recipients shall register themselves with the state customs and tax authorities. Such registration is valid for a period of 5 years.

(2)³⁾ Upon expiry of each tax period the commercial recipients of goods mentioned in Subsection (1) above shall submit a return stating the quantity of the goods that the enterprise has received during the period, and shall pay the tax heron to the state customs and tax authorities. Submission of the return and payment are subject to the regulations stipulated in Sections 2 and 3 and Sections 5-8 nos. 2 and 3 of the Collection of Taxes Act.

(3)³⁾ For other recipients of goods, submission of the return and payment of the tax are subject to the regulations stipulated in Section 9 (2)-(4) of the Collection of Taxes Act.

(4)⁵⁾ Recipients of goods who receive taxable goods corresponding to a tax of under DKK 5,000 yearly shall not register themselves with the state customs and tax authorities pursuant to Subection (1) above and shall neither submit a return nor pay the tax. Registration is valid for a minimum of 2 years unless the enterprise ceases to import goods.

(5) The state customs and tax authorities may order an enterprise that has repeatedly failed to pay the tax by the due date to submit returns on receipt of the goods. Furthermore, the customs and tax authorities may also require the enterprise to pay tax upon receipt of the goods.

(6)³⁾ The provisions of Section 9 (2) and Section 15 of the Act are correspondingly applicable.

8. Goods that are imported or received from abroad are exempt from the tax to the same extent and under corresponding conditions as stipulated for tax exemption pursuant to Section 36 (1) nos. 1-3 of the Value Added Tax Act with the exception of goods that are imported pursuant to Section 2 of the Customs Act.

VI. Accounting provisions

9.--(1) Manufacturing enterprises shall keep accounts of the manufacture of taxable goods, intake of un-taxed goods and deliveries of taxable goods. The enterprises shall keep stocks of taxed goods separate from stocks of un-taxed goods.

(2) Other registered enterprises shall keep accounts of the intake of un-taxed goods as well as deliveries and consumption of taxable goods. The enterprises shall keep stocks of taxed goods separate from stocks of un-taxed goods.

(3) Upon the transfer of taxable goods between registered enterprises pursuant to Section 3a and upon the sale of goods for purposes exempt from the tax an invoice shall be issued stating the name and address of the supplier and the recipient as well as the taxable amount. Copies of such invoices must be archived for 5 years.

(4) The customs and tax authorities stipulate the detailed regulations for maintenance of accounts by registered enterprises.

VII. Settlement of tax

10.³⁾ On the expiry of each tax period, registered enterprises shall submit a return stating the amount of the taxable goods upon which the enterprise shall pay tax pursuant to Sections 4 and 5, and shall pay the tax for the tax period to the state customs and tax authorities. Submission of the return and payment are subject to the regulations stipulated in Sections 2-8 of the Collection of Taxes Act.

11.³⁾ (Repealed)

12.³⁾ (Repealed)

13.³⁾ If the enterprise does not comply with an order to provide surety pursuant to Section 11 of the Collection of Taxes Act the state customs and tax authorities can rescind the enterprise's registration until such time as the surety has been provided.

14.³⁾ (Repealed)

14a.³⁾ (Repealed)

VIII. Control provisions

15.--(1)²⁾ The state customs and tax authorities are empowered at any time deemed necessary upon presentation of appropriate identification and without a court order to inspect the enterprises encompassed by the Act and to inspect the enterprises' stocks, accounting records, other accounts material and correspondence, etc.

(2) Owners of the enterprises and persons employed by the enterprises shall provide the state customs and tax authorities with the necessary guidance and assistance to carry out the inspection referred to in Subsection (1) above.

(3) Upon the request of the state customs and tax authorities, the material mentioned in Subsection (1) above shall be surrendered or sent to the state customs and tax authorities.

(4) Upon request, registered enterprises shall provide the state customs and tax authorities with information regarding their deliveries of goods for non-taxable purposes.

(5) When purchasing packaging that can be used for taxable purposes, commercial purchasers shall inform their supplier of the intended use of the goods. Upon request, the purchasers shall provide the state customs and tax authorities with information on their purchases and use of such packaging.

(6)⁵⁾ Suppliers of materials or parts for the manufacture of goods that are taxable pursuant to this Act are, upon the request of the state customs and tax authorities, duty bound to provide the state customs and tax authorities with information on their deliveries to enterprises encompassed by this Act.

(7)²⁾ The state customs and tax authorities are entitled to inspect goods in transit when such goods are sold commercially from abroad, or are commercially transported to other than registered enterprises.

(8)⁵⁾ The state customs and tax authorities are empowered at any time deemed necessary upon presentation of appropriate identification and without a court order to inspect the stocks and accounting records, etc. of the enterprises encompassed by Subsections (5)-(7) above.

(9)⁵⁾ In the event that the information mentioned in Subsections (1) and (8) above is maintained in electronic form, the authorities shall also have electronic access to such information.

16.--(1) Public authorities shall upon request provide the state customs and tax authorities will all necessary information for use in the registration and control of enterprises encompassed by the Act.

(2)²⁾ The Police shall provide the state customs and tax authorities with assistance to carry out inspections pursuant to Section 15. The Minister for Justice may stipulate detailed regulations on this after consultation with the Minister for Taxation.

17. The minister of Taxation can stipulate detailed provisions regarding control measures necessary to ensure the implementation of the Act

IX. Penalty provisions

18.--(1)³⁾⁵⁾ A fine shall be imposed on anyone who wilfully or through gross negligence:

• Submits incorrect or misleading information or fails to disclose information for use in controlling the tax.
• Violates Section 3(1), (4) or (7), Section 7a (1), second point, Section 9 (1)-(3), Section 15 (2)-(6) and Section 25, (1)-(3).

• Disregards the conditions stipulated pursuant to Section 6 (1)-(5).
• Fails to comply with an order notified pursuant to Section 7a (5), first point.

• Continues to operate a taxable enterprise whose registration has been rescinded pursuant to Section 3 (6) or Section 13 and the enterprise has been informed of the fact by the state customs and tax authorities.

• Transfers, acquires, procures or uses goods on which tax has not been paid, but which should have been paid according to the Act, or make attempts to do so.

(2) In regulations issued pursuant to the Act, fines may be stipulated for those who wilfully or through gross negligence violate the provisions of such regulations.

(3)⁴⁾ Anyone who commits one of the above-mentioned infringements with the intention of depriving the Treasury of tax is punishable by fine or imprisonment for up to 2 years.

(4) Companies etc. (legal persons) may also be prosecuted according to the regulations stipulated in Part 5 of the Penal Code.

19.³⁾ The regulations stipulated in Sections 18 and 19 of the Collection of Taxes Act are correspondingly applicable to infringements of this Act.

X. Other provisions

20.--(1) Any person who transfers, acquires, procures or uses goods on which tax has not been paid, but which should have been paid according to this Act, shall pay tax on the goods.

(2)³⁾ The tax on the above-mentioned goods may be charged for payment no later than 14 days after issuance of the demand. The same applies if an enterprise has received too great a refund pursuant to Section 6 (2)-(4). Sections 6 and 7 and Section 8 nos. 2 and 3 of the Collection of Taxes Act are correspondingly applicable

21. The Minister for Taxation may authorize the state customs and tax authorities to make decisions under this Act. The Minister may stipulate regulations on appeals against decisions, including that the decisions may not be brought before a higher administrative authority.

21a.³⁾ The regulations pertaining to remission and postponement of monies liable stipulated in Section 15 of the Collection of Taxes Act are correspondingly applicable to tax, interest payments, charges and administrative fines imposed pursuant to this Act

21b.--(1)⁵⁾ The National Tax Tribunal shall serve as the body of first appeal in respect of appeals against decisions of the customs and tax authorities on:

1) Questions about the tax liability of goods.

2) Questions about the taxable weight of goods pursuant to Section 2 (3)-(7).

3) Questions about calculation of the taxable quantity.

• Questions about the extent of tax refunds and tax exemptions pursuant to Sections 6 and 8.

(2) The regulations stipulated in Parts 3 and 3A of the Tax Administration Act shall apply to appeals submitted to the National Tax Tribunal pursuant to Subsection (1).

21c. (Repealed)

22.³⁾ In addition to the persons encompassed by Section 10 of the Collection of Taxes Act, the recipients of goods mentioned in Section 7a (1) and the person in possession of the goods are liable to pay any tax due pursuant to the provisions of this Act.

23. With regard to the provisions of this Act, the Faeroe Islands and Greenland and the free port of Copenhagen are placed on equal footing with abroad.

XI. Transitional provisions and entry into force

24.--(1) This Act enters into force on 1 February 1978 and is applicable to taxable goods supplied by manufacturing enterprises following the Act's entry into force.

(2) The Act also applies to imported goods submitted for customs clearance following the Act's entry into force.

25.-26. (Transitional provisions, omitted)

27. The Act does not apply to the Faeroe Islands and Greenland.

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1) Section 1(1) nos. 3 and 15 are amended by Act No. 912 of 16 December 1998, which entered into force on 1 January 1999.

• Section 15 (1), (7) and (8) and Section 16 (2) are amended by Section 9 of Act No. 380 of 2 June 1999, which entered into force on 3 June 1999.

3) Section 7, Section 7a (2), (3), (6) and (7), Section 10, repeal of Sections 11, 12, 14 and 14a, amendment of Section 13, Section 18 (1) nos. 2, 4 and 5, Section 19, Section 20 (2), Section 20 (3) and (4), Section 21b (1) no. 5, repealed, amendment of Section 21a and Section 22, are amended by Section 23 of Act No. 165 of 15 March 2000, which entered into force on 1 January 2001.

4) Section 18 (3) is amended by Section 13 of Act No. 1029 of 22 November 2000, which enters into force on 1 July 2001.

5) The title of the Act, Section 1 (1) nos. 3 and 13, Section 2 (1), (2), (3), (5), repeal of (6), amendment of (7) and (8), Section 2b, Section 2c, Section 2d, Section 3 (1), (2), (5), Section 3a, new Section 3b, Section 6 (1), (2) and (3), Section 7a (4), new Section 15 (6), amendment of (7) (now (8)) and (8) (now (9)), Section 18 (1) no. 2 and Section 21b (1) no. 2, are amended by Act No. 1292 of 20 December 2000, which entered into force on 1 April 2000. The draft of Act No. 1292 has been notified in accordance with Council Directive 98/34/EU (Information Procedure Directive), as amended by Directive 98/48/EU and in accordance with Council Directive 94/62/EU on packaging and packaging waste.