Plastic packaging tax: the ruling on balls for toys

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the nature of plastic balls used in toys, determining their treatment regarding the Special Tax on Non-Reusable Plastic Packaging.

What the DGT has ruled

The query focused on determining whether plastic balls manufactured for toys qualify as reusable packaging. The DGT has concluded that these pieces are considered packaging, as they are designed to contain, protect, handle, distribute, and present goods.

Regarding the exemption for reusability, the binding body establishes that the status of being reusable does not depend on the will of the final consumer, but rather on the objective configuration of the product. To avoid taxation, it must be demonstrated that their design and marketing are intended for multiple circuits or refills. In the absence of admissible evidence proving such reusability, the plastic balls are subject to the tax.

What this means for you

For companies manufacturing these types of products, the distinction is critical for determining their tax burden. Liability for the tax is not a matter of subjective use, but of the technical and commercial nature of the object. If the product design does not allow for proof that it can be used repeatedly in different distribution or filling cycles, the company must integrate this cost into its tax structure under Law 7/2022.

What should be done

It is necessary to analyze the technical configuration of the manufactured products. Reusability must be demonstrable through means of evidence confirming that the design allows for multiple uses within the supply chain. It is recommended to assess the nature of each product and the technical documentation supporting its life cycle to determine the applicable tax treatment in accordance with current regulations.