Payment of deposit refunds to container return locations not liable for value added tax

Palpa will refund deposits to container return locations after receiving the beverage containers (drink cans and recyclable plastic bottles) returned to the locations in question.

The refund invoice is a sale invoice issued by PALPA on behalf of the return location. The deposit to be refunded includes the VAT of 23 %. In order for PALPA to be able to deduct VAT from its purchases, the container return location must be liable for value added tax in its business activities (Value Added Tax Act, Article 102, paragraph 1, section 1). As PALPA does not sell beverages to container return locations, beverage containers returned to PALPA cannot be treated as so-called adjustment entries for taxable sales (Value Added Tax Act, Article 78, paragraph 1, section 3).

Container return locations not liable to pay business-related value added tax have four options for returning empty containers to PALPA:

1. Apply for registration as an establishment liable for value added tax in its business activities, or
2. Accept refund payments exempt from tax, or
3. Return beverage containers to return locations maintained by retail trade stores, similarly to private consumers, or
4. Accept deposits as taxable payments from the return location's principal beverage supplier. PALPA will refund the deposits to the beverage supplier, who will in turn refund the return location.

Please notify us of how you wish to handle the PALPA beverage container return process. Complete a VAT form and send it to PALPA, either by email to asiakaspalvelu@palpa.fi, or by mail to Suomen Palautuspakkaus Oy, PL 119, 00241 Helsinki. If you wish to return beverage containers via your beverage supplier, please provide the customer number that your beverage supplier has given you.