- Insights
Monthly News - August 2024
It’s the start of a new month, and there’s always something new in the tax and compliance sectors. So, what’s changed recently?
1. Spain extends zero-rate VAT scheme
Spanish authorities have announced that the temporary 0% VAT rate for basic foodstuffs will be extended until September 2024. The zero-rate scheme was originally scheduled to end on the 30th June 2024.
The 6-month extension will be implemented in two phases. Zero-rating will continue to apply until the end of September 2024. From October 2024, a super-reduced rate of 2% will apply. On the 1st January 2025, the scheme will end and the VAT rate will revert to the original normal rate.
The scheme covers basic foodstuffs such as bread (including frozen bread), animal milk, cheese, eggs, fruits, vegetables and other natural products such as cereals. As part of the extension, olive oil has also been added to the scheme.
2.General Product Safety Regulation (GPSR) set to come into force at the end of this year
On the 13th December 2024, new provisions of the EU General Product Safety Regulation (GPSR) will be enforced. The GPSR will replace existing requirements under the General Product Safety Directive (GPSD).
The new GSPR requirements will require non-EU businesses to appoint a Responsible Person for most CE and non-CE products. Previously, under existing legislation (General Product Safety Directive), only CE-marked products required a Responsible Person to be appointed.
Online marketplaces such as Amazon will be required to ensure that sellers are fully compliant. Sellers that are non-compliant will risk product de-listings and potential suspension.
For more information, you can view our webinar here.
3.Germany implements Single-Use Plastics (SUP) EPR regulations
From the 1st January 2025, a new environmental regulation will be enforced in Germany under the Single-Use Plastics Fund Act (EWKFondsG). The law will cover all producers, including importers, distributors and resellers of Single-Use Plastics (SUPs).
SUPs are defined as single-use items designed to be sold as products, such as food containers and wet wipes. This is separate from the existing Extended Producer Responsibility (EPR) regulations covering packaging.
The central agency responsible for managing SUPs is the German Environment Agency (DIVID). Producers who have obtained an SUP registration will need to report their sales and pay a proportional annual contribution fee.
Registration for overseas businesses outside Germany opened this month (August 2024). Businesses who are non-compliant after the enforcement date may face product de-listings, account closures and/or financial penalties.
The regulation will retroactively cover the calendar year – all producers registering for SUP in 2024 will be required to report sales for the entire year of 2024.
