Tax & Legal

The finance ministry has distinguished between returnable containers sold with the content and subject to the same rate of VAT and transport packaging within the trade and subject to standard rate VAT.

The Supreme Tax Court has held that a bottling plant may take up a provision for the deposits repayable on return of its own bottles, but not on those belonging to a pool. Payments for pool bottles in excess of the plant’s share in the pool are prepaid expenses or usage rights.