A nationwide deposit-refund system has been in effect throughout Poland since October 1, 2025. Most of us associate it primarily with environmental concerns – collecting bottles and cans to promote recycling. However, beneath the surface of this pro-environmental initiative lies a surprisingly complex tax layer that impacts both businesses and consumers.
The regulations regarding VAT settlement on deposits depart from standard, transactional taxation models. Instead of burdening the entire supply chain, legislators have opted for an innovative approach, which may be a complex obligation for some.
Only one entity in the entire chain will pay VAT
The most important change is a radical simplification of who is responsible for settling VAT on unreturned packaging. The new rules stipulate that this obligation rests solely with the entity introducing beverage packaging products to the market, i.e., the manufacturer or importer.
This means that the entire chain of intermediaries—from wholesalers to retailers—is completely exempt from this obligation. Although these entities will physically collect and return the deposit, they will not have to worry about recording and accounting for it for VAT purposes. This is a fundamental departure from the standard model, in which VAT is charged at every stage of the transaction. This solution relieves smaller businesses of this obligation and solves a key logistical problem: a local store accepting returns has no way of determining which producer originally sold a given bottle. A traditional VAT model would be operationally unfeasible in this situation. By centralizing tax responsibility, the system becomes feasible for implementation at tens of thousands of points of sale.
Who is the taxpayer and who is the payer?
Another unusual rule concerns the division of tax roles. The regulations introduce a clear distinction between the taxpayer (the entity obligated to settle the tax) and the payer (the entity responsible for physically paying the tax to the tax office).
In this model, the importer (manufacturer/importer) is the taxpayer responsible for the tax. However, the representative entity, i.e., the operator of the deposit system, serves as the payer. It is this entity that is responsible for calculating the VAT due on unrefunded deposits and transferring it to the tax office's account.
This division is intended to secure budget revenue. The representing entity physically holds the funds from unrefunded deposits, so making it the payer ensures that the tax is paid directly from the source. This minimizes the risk of uncollectible payments to the state. Payments are made to an individual tax micro-account belonging to a specific introducer. Importantly, the representing entity is responsible for obtaining this micro-account number from each manufacturer it works with. This number can be verified using the tax micro-account generator on the Ministry of Finance website ( Tax Micro-Account Generator ).
VAT settlement once a year
Unlike standard monthly or quarterly VAT settlements, tax on unrefunded deposits will be settled annually and with a significant delay. This process is not ongoing, but is finalized only once a year.
The basis for calculation is the difference between the number of packages introduced to the market and the number of packages returned to the system by December 31st of a given year. Crucially, the entity introducing the VAT does not have to settle this tax immediately. They are required to settle it in their VAT return (JPK file) for the first settlement period of the following year. This means that the settlement for the entire year will be included in the JPK for January (submitted by February 25th) or for the first quarter (submitted by April 25th) of the following year.
This solution gives all parties time to collect and verify complete data for the entire calendar year before the final tax liability arises. However, it's worth noting that an exception is provided for the first year of the system's operation: taxpayers settling VAT monthly for 2025 will have their VAT settlement for February 2026 filed by March 25, 2026, giving them an additional month to implement the procedures.
The unrefunded deposit is the gross amount
The method of calculating the tax itself is also counterintuitive. The regulations stipulate that the total value of the deposit on unreturned packaging at the end of the year is treated as a gross amount , meaning the amount already includes VAT. This means that to calculate the tax due, it must be "calculated backwards" (using the "in hundred" method).
Further complicating matters is the fact that the VAT rate must correspond to the tax rate for the product originally contained in the package. If a manufacturer sells both juices (taxed at 5% VAT) and carbonated drinks (taxed at 23% VAT), they must perform separate calculations for each product group. Where it is impossible to assign a package to a specific product, a proportionality key based on the sales structure is applied.
In the example below, we'll use a fixed deposit amount of PLN 0.50, as specified in the Regulation of the Minister of Climate and Environment. Let's assume that at the end of the year, the following deposits were not returned:
Juice packaging (VAT rate 5%)
- Number of unreturned packages: 50 pcs.
- Gross deposit value: 50 x PLN 0.50 = PLN 25.00
- VAT due: PLN 1.19
Beverage packaging (VAT rate 23%)
- Number of unreturned packages: 100 pcs.
- Gross deposit value: 100 x PLN 0.50 = PLN 50.00
- VAT due: PLN 9.35
Total tax liability for unrefunded deposits: PLN 10.54.
No right to deduct VAT on an unrefunded deposit
This is crucial information for accounting departments in all companies. The regulations clearly state that businesses will not be entitled to deduct VAT on the value of an unrefunded deposit, even if the purchased beverages were intended for business purposes (e.g., for employees).
The logic behind this principle is twofold. First, the deposit system is designed to ensure that the deposit is always fully recoverable—at any time and without proof of purchase. Failure to return packaging is therefore treated not as a business expense, but as a conscious decision not to exercise the right to a refund.
Secondly, this rule is a key anti-fraud measure. Without it, a company could theoretically receive a cash refund for the returned bottle while simultaneously deducting VAT on the "lost" deposit, resulting in a double benefit. The legislation completely closes this loophole.
Easier for stores, harder for producers
The main goal of this different settlement method is to simplify obligations for most market participants – retailers and wholesalers. The administrative and tax burden has been transferred entirely to a limited group of entities: suppliers (producers and importers) and system operators.
This model focuses on simplification at the retail level. A key challenge will be whether the data management systems of producers and their representatives will prove robust enough to cope with the concentrated complexity of the new annual tax return. The second element that will ensure the smooth operation of VAT settlements on deposits is the human factor. Knowledge of the applicable regulations and procedures is crucial for the smooth operation of the deposit system.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of January 19, 2026.
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