Tax Alert

The mandatory Deposit and Return System (DRS) comes into effect in Hungary as of 1 January 2024. Similar schemes have been implemented throughout the EU in order to ensure the return of beverage packaging for recycling or reuse. The new legislation, which clarifies the key points of the system, was published on 4 October 2023.

The Deposit and Return System will apply to non-reusable or reusable plastic, metal or glass beverage packaging with a capacity of 0.1 to 3 litres (excluding milk and milk-based beverage products), and applies to producers who submit more than 5000 pieces of such packaging a year to the marketplace. These producers are required to register their products on MOHU’s dedicated website and must include a special logo on their packaging to comply with the legislation. Products without the mandatory symbol can remain in the marketplace until 30 June 2024.

Producers are obliged to pay connection, service and return fees to the concessionaire company (MOHU) for the handling of non-reusable products. Reusable products must be collected by the producers, who have to ensure their reuse. In the case of reusable packaging, producers will have to pay connection and service fees to MOHU.

On returning the affected packaging to retail stores, consumers will receive a refund. According to the legislation, stores selling food with a sales area of more than 400 sqm are required to accept the returned products and refund the fee. Other stores may voluntarily apply to be collection points.

With the implementation of DRS, the Extended Producer Regulation (EPR) will be also amended from 1 January 2024. . The previously indicated KF codes will also change.