Since 2006, a regulation has been in force stating that all parties professionally serving or importing drinks ready for consumption in plastic bottles or metal cans must ensure that the product is included in an approved return system. (This does not apply to drinks that mainly consist of dairy products.) Juice products and fruit syrup in plastic and metal packaging will by January 2023 transfer to regulation-governed connection agreements and thus those products must also be included in an approved deposit system.
If you want to connect your business to the deposit system you should know that:
- F-tax and VAT registration are required for Swedish companies and VAT numbers for foreign companies
- Returpack makes a credit assessment of your company and calculates eventual security fee. Returpack maintains the security fee during the duration of the agreement. When the agreement expires and your product has stopped including money for deposit, Returpack will repay the fee.
- You pay an annual affiliation fee of SEK 10 000 SEK. The fee goes in full to the Swedish Board of Agriculture. There is no affiliation fee for the voluntarily connected products (fruit syrup (saft) and juices and smoothies).
- that fruit and juice products must be included in an approved deposit system from January 2023.
- that dairy products in aluminium cans that are not forced to be included in an approved return system can be connected voluntarily. The agreement process and the terms are the same, except that there is no annual connection fee of SEK 10,000 for voluntary products.
All the contract terms to the agreement:
Must all kinds of drinking packages need to be included in an approved return system?
Since 2006, a regulation has been in force stating that all parties professionally serving or importing drinks ready for consumption in plastic bottles or metal cans must ensure that the product is included in an approved return system. (This does not apply to drinks that mainly consist of dairy products or vegetable, fruit or berry drinks.)
Since 2015 manufacturers and importers of ”saft” can voluntary enter the Swedish recycling system, and since 2018 the same applies to producers and importers of juices and smoothies. Since 2021 the sam also applies to producers and importers of dairy products in metal cans.
What do I need to report to Returpack?
By the 7th of each month, you must report how many products per barcode you sold during the previous month. You report it on the customer portal My Pages. Returpack then sends an invoice for deposit and fees and follows the products' recycling.
What about VAT and deposit?
In the store, the deposit has the same VAT rate is dependent on the type of beverage, that is, grocerys like soft drinks and water have 12% in VAT and then the deposit also has 12% VAT (net deposit 0,89 SEK + 12% VAT = 1 SEK) Strong beer has 25% in VAT and the deposit also has 25% (net deposit 0,80 SEK + 25% VAT = 1 SEK).
When Returpack, as responsible for the deposit system, invoices or pays out the deposit money to the trade, the deposit is handled separately from the product and then the deposit is instead seen as a service. Services in Sweden has a VAT at 25%. So, when Returpack invoices the producers and importers for a deposit, or pays it to the stores, the deposit is subject to VAT at 25%.
Companies neither win nor lose on different VAT rates. It is not the percentage that is important but the relationship between how much you get in VAT when you invoice and how much you pay in VAT to your suppliers. When you invoice VAT, a debt arises to the state and when you pay an invoice, a claim arises on the state. These records will replace each other. If you have paid more net in VAT, you get the surplus back and if you have received more VAT than you paid, you have to pay the difference afterwards. VAT thus has no direct effect on a company's earnings.
What about entering optional products to the recycling system?
Since 2015 manufacturers and importers of ”saft” can voluntary enter the Swedish recycling system, and since 2018 the same applies to producers and importers of juices and smoothies. The agreement process and the terms are the same, except that there is no annual affiliation fee of SEK 10,000 for voluntary products.
Which are the necessary requirements for a can to be included in the return system?
The can is assessed to ensure that it functions optimally throughout the recycling process. Here you see the requirements that are set, for example, on material, deposit marking and bar code. All requirements are to be found in our technical specification.
Which are the necessary requirements for a PET bottle to be included in the return system?
The bottle is assessed to ensure that it functions optimally throughout the recycling process. Here you see the requirements that are set, for example, on material, adhesives, printing ink, deposit marking and bar code. All requirements are to be found in our technical specification.
How much does it cost to be a part of the deposit recycling system?
An annual fee of SEK 10,000 forms the basis for membership of Retupack´s recycling system. This fee will be forwarded to the Swedish Board of Agriculture, which is the supervisory authority for this kind of activities.
There is no yearly affiliation fee for voluntarily connected products. Read more about the conditions that apply to voluntary connection to the deposit system.
Administrative fee and sorting fee
For plastic bottles and metal cans, the manufacturer or importer pays a fee for each package sold to Returpack. The fee covers the administration, collection and sorting of the packaging. For plastic bottles, the fee depends on the size and color of the packaging. You pay a lower fee for a clear, transparent bottle than you do for a colored bottle. This is because the clear plastics have a specific quality as a container for food and therefore can become a new bottle. The colored plastic material is also reused for new products but cannot become food packaging. The same fees per connected packaging apply to voluntarily connected products.
For aluminum cans, there are no administrative or sorting fees.
The deposit is no fee
The deposit is not a fee but revolves around between producer, Returpack, store and consumer. In the store, the deposit is reported separately on the price tag and is not baked into the sales price.