To this day, we encounter companies in our practice that pay huge amounts as product fee merely because the reporting that is supposed to support their filings is unsuitable or confusing. They have useless records for this data supply obligation and it is unclear what they pay or do not pay product charges for, and especially for what reasons.
In the lives of most companies, the environmental product fee is a necessary evil which most departments strive to rid themselves of. Filing the returns is the responsibility of finance and/ or accounting but reporting belongs to a different department which generally receives the data from logistics or, in some cases, from an affiliated company abroad. This, however, is a typical case of too many cooks spoiling the proverbial broth. Indeed, it would be important to think over and check the systems thoroughly since, with careful planning, the related administrative and payment obligations could be reduced or even avoided altogether in some cases.
The experts at Mazars can help you cut the Gordian knot by developing the processes, establishing the correct content of the reports, and minimising related liabilities.
To whom do we recommend our services?
- To any company that has an environmental product fee obligation, especially if they export, participate in triangular transactions, manufacture or use any products in their manufacturing that are subject to product fee payment obligations
- To companies that file product fee returns and ensure that they pay their liabilities but are uncertain what data they use as a basis for the returns, and find the contents of the reports to be unclear
- To those who feel that in the case of an audit by the tax authorities they could not provide satisfactory answers to even the simplest questions of the auditors (What are the products after which you pay a product fee? In which cases? At what times?)
- To those for whom the acronym OKTF (National Inspectorate for Environmental and Nature Protection) does not sound familiar
How can we help?
- We identify the products that are subject to the environmental product fee.
- We develop the system of assumptions and refunds optimising the processes, as well as the necessary contractual background and help with the proper setting up of invoicing, or review the existing systems.
- On the basis of the product flows and processes drawn up, we prepare a customised environmental product fee policy which will help the company in the case of an audit by the tax authority in supporting its returns and records.
- We review the records and reports related to the environmental product fee and help with making them more efficient.
- We take over tasks related to the filing of the returns, or help with administration (the determination of the CSK/KT codes, which form to complete when, etc.).
- If necessary, we carry out a complete review for identifying and properly handling environmental product fee payment obligations.
If you have any questions in connection with our services, please contact our advisor colleagues.