Plastic Packaging Tax: Invoicing requirements change

HMRC finally make a decision on Plastic Packaging Tax invoicing requirements!

Since the introduction of the Plastic Packaging Tax, back in April 2022, the online guidance has continued to state “The requirement to include a statement with your invoice to show that Plastic Packaging Tax has been paid, which was due to commence in April 2022, has been delayed”.

In an announcement issued on the 27th January 2023, HMRC have finally decided not to impose a legal requirement to provide wording on invoices in relation to any applicable Plastic Packaging Tax.

The requirement to confirm the applicable Plastic Packaging Tax on the sale has, based on feedback from clients, not been a major issue. Moreover, it was the requirement to state the exact tax against each product which was causing more concerns as it meant a change to existing invoicing software to supply such information.

Instead, HMRC appear to have recognized this issue and will update its guidance to only recommend that Plastic Packaging Tax registered businesses provide information about the tax paid on invoices to their business customers.

The HMRC communication suggests that the updated guidance is likely to include alternatives to additions to invoices such as:

• Including information about the tax on price lists to give an informed choice to customers
• Sharing how much tax has been charged on a regular basis or upon request from customers
• When making design decisions with customers, ensure more sustainable packaging solutions are considered

Get in touch 

If your company is concerned about these changes, please get in touch with our Indirect Tax team are available to discuss these with you and advise on the best course of action.