Only three months remain until Poland launches its long-awaited deposit return system (DRS) on October 1, 2025. The system will apply to glass and plastic bottles as well as beverage cans. While the move is a major step toward a circular economy, it also introduces significant changes—and challenges—for beverage producers, retailers, consumers, and the licensed DRS operators responsible for collection and logistics.
Amid ongoing regulatory uncertainty, stakeholders are raising concerns about tax implications, settlement rules, and the practical rollout of the system. One pressing issue: producers will be required to pay VAT on unreturned bottles, adding to their operating costs.
What the Deposit Return System Will Cover
The system will cover:
- Plastic bottles (PET) up to 3 liters
- Metal cans up to 1 liter
- Reusable glass bottles up to 1.5 liters
Each deposit-bearing container must be marked with a specific logo and the deposit amount. For reusable glass bottles, the deposit will be PLN 1. For plastic bottles and cans, it will be PLN 0.50.
“At first glance, it seems simple—retailers collect 50 groszy or one zloty at the point of sale, and consumers return bottles or cans for reimbursement. But organizing the entire infrastructure—signing contracts with stores, coordinating with DRS operators—takes time, and we have very little of it left,” says Marek Przybylski, tax advisor and legal counsel at MDDP.
Eight Operators, Eight Systems?
So far, seven operators have been approved by Poland’s Ministry of Climate and Environment: Zwrotka, Polka, OK Operator Kaucyjny, EKO-operator, Reselekt, Kaucja, and Polski System Kaucyjny. An eighth company has applied, and there are rumors of a ninth. With multiple actors in play, there’s concern that Poland will effectively operate several parallel deposit systems, each possibly using different rules—even though all will deal with the same types of packaging.
All retail outlets selling beverages in deposit-bearing containers will have to collect the deposit. Larger stores (over 200 m²) will be required to accept returns, while smaller shops may join the system voluntarily. Notably, no receipt will be required to get the deposit back.
“Retailers will face space issues. Collection machines take up room normally used for selling products. And then there’s customer confusion—what if someone buys two drinks, one marked with a deposit label and one not? They’ll expect two refunds but only get one,” Przybylski explains.
Complex Logistics and Financial Responsibility
DRS operators will handle the collection of empty containers, not only from stores but also from designated drop-off points outside retail locations. By law, each municipality (almost 2,500 in Poland) must have at least one return point.
The system is being introduced in line with EU Directive 2019/904 (SUP Directive), which mandates extended producer responsibility (EPR). Beverage producers will finance the system, covering costs such as collection, transportation, data management, and deposit refunds. They’ll also have to meet strict recycling targets—77% by 2025, and 90% by 2029.
In addition to being funded by producers and revenues from recycled material sales, the system will also retain unclaimed deposits.
“The deposit system introduces what is effectively a new tax—producers must calculate how many bottles were sold and how many were returned, and pay VAT on the difference,” Przybylski says. “This means producers will have to cover the VAT from their own funds, even though the deposit money goes to the operators. It’s a complex chain of settlement between producers and operators.”
Unanswered Tax Questions
Producers, retailers, and operators still have many unanswered questions, especially about how to handle deposit-related VAT and settlements.
“Retailers ask whether deposits count as part of their revenue and if they affect their VAT liability. When returning a deposit, can they deduct VAT? Or should the deposit be treated as a pass-through and excluded from tax calculations altogether?” says Przybylski. “The law is silent on these issues. The Ministry of Finance should either amend the regulations or issue clear tax guidelines.”
Risk of a Chaotic Rollout
The uncertainty surrounding tax treatment, operator coordination, and data reconciliation could cause confusion when the system goes live. At the recent Tax Council Congress hosted by Konfederacja Lewiatan in Warsaw, the issue of DRS taxation was widely discussed. MDDP served as a strategic partner of the event, and Newseria was its media partner.
“Right now, every client—whether a producer, retailer, or operator—is trying to decide on a working strategy, because the law provides no clear direction,” Przybylski concludes.
