Get free access to
From 1 July 2023, the so-called Extended Producer Responsibility in Hungary, or EPR system, will come into force in Hungary.
Although there is a significant overlap between products subject to the environmental product charge and products subject to the EPR, it is highlighted that there are product groups that are subject to solely one or only the other.
It is important to note, however, that further detailed analysis of individual products is necessary, given that there are a number of exceptions and the range of products covered by the obligations is well defined. On this basis, not all electronic equipment is subject to the EPR, and the range of textile products (e.g. clothing, carpets, blankets, bed linen, curtains, footwear) for which the subject is liable to pay the levy is accurately defined.
For each product, in addition to the already known KT and CsK codes (green tax), the EPR introduces the so-called KF codes, which are structured differently from the previous ones and are necessary for the subject to be able to fulfil his obligation.
It is important to note that some of the rules for production, placing on the market and personal use are laid down in separate legislation for each of the two obligations, so that there may be differences and the two obligations need to be assessed separately in each case.
For products covered by both the EPR and the green tax (see list above), the should be established on the basis of the following rule (i.e. the EPR charge should always be set in full and the product charge may be modified):
If, on the basis of the above calculation, the difference between the rates is a negative number or zero, then the calculated product charge is zero Ft/kg and therefore no product charge is payable (EPR charge still applies).
The product charge liability for the first domestic placing on the market or for own use continues regardless, i.e. as before, records must be kept, a return must be filed, but no payment is due (noting again, this is only the case when the difference in the rates is zero or negative according to the above equation).
The obligated manufacturer must (subject to certain exceptions laid down by law) include the following text on the invoice or, in the absence of an invoice, on the document proving the placing on the market, except in the case of retail sales.
If the purchaser of an EPR, i.e., a circular product, so requests, the invoice (or, in the absence thereof, the documentary evidence) must include the following text (again, except for retail sale).
It is important to note that with the entry into force of the EPR regime, the invoice clause requirements for product charges have not changed.
It should be stressed that there are specific cases other than those mentioned above that should be further investigated to determine the exact applicable invoice clause, for example, in the case of shipments abroad.
By the 20th day of the quarter following the end of each quarter:
Note that the deadline for the first return will exceptionally be 15 October 2023.
It is recommended to review the data of the invoice issued by the concession company (MOHU),
Our expert colleagues are available for all requests related to the new liability regime. The new system may raise a number of questions and new tasks in the life and operation of businesses, which our advisers will help you to navigate.