Learn about the latest news on environmental taxes in Spain

Spain’s recent Law 7/2022 on waste and contaminated soils for a circular economy (BOE 11-4-2022) covers the need to prevent the uncontrolled generation of non-reusable plastic waste. This law includes in the legal system two new environmental taxes that will help to improve this situation. Do you want to know more about this new law? Stay with us until the end of this article, join us!

What are environmental taxes?

According to the European Union, these are taxes aimed at mitigating climate change and promoting a sustainable use of resources. In this way, the more efficient use of energy is promoted, which helps to improve the electricity system and promote a more optimal transportation system.  

The technical definition given by international organizations is that they are taxes whose tax base consists of a physical or similar unit of some material that has a proven and specific negative impact on the environment.

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What are the categories that make up green taxes in Spain?

Green taxes in Spain will be categorized into three groups. If you want to know these categories, see the image below:

How much can the environmental tax raise in Spain?

According to data issued by the INE, this tax has been increasing its collection in recent years. This is shown in the following graph:

The largest collection is achieved thanks to the energy tax, raising up to 18 billion euros in past years. The burden of the environmental tax always falls mainly on households and that is where more than half of the revenue is collected.

How much did the pollution and resource tax collect?

The pollution and resource tax, according to a report published by Eurostat, collected less than 5% of total environmental tax revenues in 2021. Although it seems a low figure, Spain was the third country that collected the most in this category.

The tax burden covered by this tax ranges from household waste, sewage production, plastic bags and some branches of activity such as fishing and hunting. 

What are the new green taxes included in the law?

The Waste and Contaminated Soil Law for a Circular Economy, with the intention of covering the growth of waste, approves two new tax levies that came into effect as of January 1 of this year.

What is the tax on non-reusable plastic packaging?

The environmental tax on non-reusable plastic packaging is modeled as an indirect tax and is applicable throughout Spain. Within the definition of non-reusable plastic packaging, the following are considered as such:

• Non-reusable packaging containing plastics.
• Products that are made with plastics that are semi-finished and are intended for the realization of packaging.
• Products made of plastics that are intended to be used for the closure, marketing or presentation of non-reusable packaging.

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What is considered plastic packaging under the law?

Packaging, according to the definition given in article 2 of Law 7/2022, is considered to be any product intended for the use of containing, protecting, handling, distributing and presenting goods.

Which cases are not subject to the tax on non-reusable plastic packaging?

In no case is it possible to apply the tax to the following operations:

• The manufacture of the products: when the accrual of the tax, has ceased to be suitable for use and when their destination is to be sent directly by the manufacturer to a territory outside Spain.
• The manufacture, importation or intra-community acquisition: of non-reusable packaging containing plastics that fulfill the function of containment, protection and handling of goods.

What is the role of the tax on landfilling, incineration and co-incineration of waste?

This green tax is considered indirect and is applicable throughout the Spanish territory. And there is no problem in the foral regimes in the Basque Country and Navarra.

In addition, the transfer of this tax to the autonomous communities is predicted, by means of the acceptance of the agreements of the constitutional frameworks of cooperation in matters of autonomous financing and the constant restructuring of the regulations.

Premises taxed under the tax on waste deposits.

This tax imposes the delivery of waste for disposal in authorized landfills and its disposal or energy recovery in authorized waste incineration or co-incineration facilities.

In addition, for both premises, the facilities can be either publicly or privately owned and must always be located in Spanish territory for the tax to be applicable.

Which deliveries are not subject to waste deposit tax?

The delivery of waste to landfills or incineration or co-incineration facilities is exempt from taxes when the following cases occur:

• In situations of force majeure, i.e., in situations of extreme necessity, catastrophe or seizure of assets to be destroyed.
• Situations arising from taxable transactions that would have been effectively taxed for this tax.
• For which there is a legal obligation to dispose of in these facilities.
• Residues resulting from soil contamination.
• Waste generated for construction purposes.
• Waste resulting from municipal treatment operations.

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If you are interested in learning more about this tax and want to know if your company has to cover it. I invite you to contact our professionals through our email tasconsultoria@tas-sl.es. They will be able to give you the information you need. Just contact us and ask for your free advice, don’t miss this great opportunity!