Stimulating the processing of used materials
Almost all entrepreneurs always think about how much something will cost them. The same is with the used materials, old machines or equipment that they don’t use. Also, they always have a problem with ''moving'' these things from their financial book. Thus, for them it would be much easier to give away this waste to someone or simply throw it away. But the tax administration and tax regulation do not allow such activities.
In accordance with the law, if an entrepreneur wants to dispose this type of waste, he has to inform tax administration or a responsible person from the tax administration who will give the permission for this type of waste, or they can give it to the authorized waste collector. The benefit of giving such used materials or machines to the authorized waste collector is that a company can get some fee for this type of waste. That means that companies sell this kind of waste and that the VAT Directive requires that they do not charge VAT on such delivery, nor they apply transfer of tax liability to the buyer - of course if the purchaser is the taxpayer.
This is the way how tax regulations don’t let companies throw waste into the environment, but also stimulate them to give it to someone who will process this type of waste and use it again.
The topic of stimulating the processing of used materials will be the main topic for the Hi4CSR coordinator - RRiF.
If you have any questions, comments or examples of good practices when it comes to this subject, let us know on firstname.lastname@example.org.
Author: Ivan Petarcic (RRiF)