Current issues about the extended producer responsibility fee

Two weeks are left to amend data provided for 2023 - VAT treatment of MOHU invoice

Taxpayers obliged to report extended producer responsibility (EPR) data may amend the data reported for the third and fourth quarters of 2023 until 31 March 2024. The National Tax and Customs Authority clarified that invoices issued by MOHU for the EPR fee are subject to VAT.

1) Amendment of EPR data provided and submission of missing data

Based on statutory provisions, EPR data provided may be amended once between 1 January and 31 March of the year following the reporting year.

This means that taxpayers have the opportunity to amend the data they provided for the third and fourth quarters of 2023 until 31 March 2024.

Although the legislation does not contain a special rule for submission of outstanding data, we believe that the deadline for the submission of these data is also 31 March 2024.

Failure to provide data or submission of incorrect data may be sanctioned (by imposing a waste management fine). Therefore, entities should assess whether they have complied with their obligations. Performing this assessment is recommended also for the purpose of checking whether the quantity reported is in excess of what is required by legislation, which may result in undue additional costs.

Our experts have extensive experience in both performing statutory compliance audits and compiling data to be reported, and can help you avoid these issues.

2) VAT content of MOHU invoices

The National Tax and Customs Authority issued a Tax Question, in which it clarified the treatment of the EPR fee invoiced by MOHU from a VAT perspective.

According to the National Tax and Customs Authority’s guidance, the tasks performed by MOHU as a concession company are regarded as services supplied within the meaning of the VAT Act to taxpayers subject to the reporting obligation. Consequently, EPR fees qualify as consideration paid for the services supplied, falling under the scope of the VAT Act as taxable supplies, and MOHU is required to charge 27% VAT on the EPR fee components payable both to MOHU and municipalities.

Our experience shows that, in certain cases, invoices for the fee component payable to municipalities were not issued as specified in the National Tax and Customs Authority’s guidance. Therefore, these invoices will probably have to be amended.

The new waste management rules may give rise to further VAT-related questions also in other cases. Our experts are ready to assist you in these matters.

If you have any questions regarding the above, please contact our colleagues below.

László Deák 
Partner
Email: laszlo.deak@pwc.com

Gábor Farkas 
Partner
Email: gabor.farkas@pwc.com

Balázs Szük 
Senior manager
Email: balazs.szuk@pwc.com