For companies, there are several options available for managing degraded goods, unsellable stock, or non-compliant inventory. Each option may have different financial and tax implications. Here are a few possible solutions:
- Authorized destruction: Handing over goods to an authorized company for destruction allows for the fiscal deductibility of both expenses and VAT. It is important to obtain the necessary documentation proving the compliant and legal destruction of the goods.
- Recycling: Partnering with specialized recycling firms can be an environmentally friendly and sustainable solution, reducing waste while recovering useful materials.
- Donations: If the degraded goods are still usable to some extent, consider donating them to charitable or non-profit organizations. This can bring fiscal advantages in the form of tax deductions.
- Return to suppliers: In certain cases, suppliers may accept the return of degraded goods, which could lead to a credit or replacement of the goods, thus mitigating losses.
- Sale at reduced price: Goods that can no longer be sold at their usual price can be liquidated at a reduced rate. This option helps recover part of the costs and free up storage space.
- Composting or use in other biological processes: If the degraded goods are organic in nature, they can be composted or used in other biological processes to produce natural fertilizer or biogas.
In all of these cases, it is crucial to keep complete and accurate documentation to justify your actions from a legal and tax perspective. Additionally, consulting with an accounting or tax expert is advisable to ensure compliance with all regulations and to maximize any tax benefits. For more details on the accounting treatment of unsellable stock, consult this guide.
According to current legislation and available accounting information, services paid to an authorized company for the destruction of goods are tax-deductible, both in terms of corporate income tax and VAT.
A company that transfers unsellable or non-compliant stock to an authorized company benefits from tax advantages and also protects its brand reputation.
If a company holds degraded, unsellable, or non-compliant inventory and delivers it to an authorized company for destruction and recycling, the removal of these items from inventory is eligible for VAT and expense deductibility. As a result, no additional taxes are due to the state.
If degraded, unsellable, or non-compliant stock is not transferred for authorized destruction, the expense becomes non-deductible for tax purposes, and the deducted VAT must be adjusted. This means that, on the entry value (excluding VAT), an additional 16% corporate income tax and 19% VAT will be calculated.
Why recycling is important
Recycling is essential for environmental protection, conserving natural resources, and supporting the economy. First, recycling helps conserve raw materials by reducing the need to exploit new natural resources.
Second, recycling significantly reduces pollution. Producing new materials often involves industrial processes that emit pollutants into the air, water, and soil. Recycling typically produces fewer emissions and reduces overall pollution.
Another major benefit of recycling is energy savings. Manufacturing products from recycled materials consumes less energy than producing them from virgin resources. For example, producing glass from recycled glass requires 40% less energy than making it from raw materials. This not only reduces energy consumption but also lowers production costs.
Recycling also helps reduce the amount of waste sent to landfills. By diverting materials from landfills, recycling extends the lifespan of these sites and mitigates waste management issues. Reducing waste also lessens the risk of soil and water contamination.
In addition, recycling creates jobs in the collection, sorting, and processing of recyclable materials, contributing to both local and national economic growth. Recycling fosters innovation and supports a circular economy, promoting efficient resource use and minimizing waste.
There is a wide range of recyclable materials, each with its own processes and benefits. Among the most common recyclable materials are paper and cardboard. Office paper, newspapers, magazines, and cardboard boxes can be recycled, contributing to tree conservation and reducing waste in landfills. Recycling paper saves energy and natural resources while also lowering greenhouse gas emissions.
Glass is another important recyclable material. Glass bottles and jars can be endlessly recycled without losing their quality. This process conserves resources and energy, significantly reducing environmental impact.
Metals such as aluminum and steel are highly recyclable. Beverage cans and food tins can be transformed into new products, saving energy and reducing the need for new ore extraction. Recycling metals is energy-efficient and helps cut down on pollution.
Plastics, though diverse, are also recyclable. Common recyclable plastics include PET, used for beverage bottles, and HDPE, used for milk and detergent containers. Recycling plastic helps reduce the volume of waste entering the environment and oceans, protecting wildlife and ecosystems.
Electronic waste, such as mobile phones, computers, and televisions, contains valuable metals and materials that can be recovered through recycling. Proper management of e-waste prevents environmental contamination with toxic substances.
Textiles, including clothes and fabric materials, can also be recycled or repurposed. Textile fibers can be turned into new textile products or insulation materials, reducing the amount of waste.
Batteries, which contain heavy metals and harmful chemicals, can be recycled to prevent environmental pollution. Used tires can be transformed into rubber asphalt or other rubber products, reducing waste.
Organic waste, such as food scraps and garden waste, can be composted and turned into natural fertilizer for soils. Recycling materials helps reduce pollution, conserve resources, and protect the environment.
Household waste represents a broad category of daily waste generated in homes. These include various materials that must be properly managed to minimize environmental impact.
Organic waste is composed of food scraps and garden waste. This includes vegetable and fruit peels, meat leftovers, bread, dairy products, leaves, branches, and grass clippings. These wastes are biodegradable and can be turned into compost, a valuable natural fertilizer.
Recyclable waste consists of materials that can be reintroduced into the production cycle. These include paper and cardboard (newspapers, magazines, cardboard boxes), plastic (water bottles, detergent containers, packaging), glass (jars, beverage bottles), and metals (aluminum cans, food tins). Recycling these materials reduces the need for new resources and saves energy.
Non-recyclable waste includes items that cannot be processed for material recovery. These include contaminated materials (toilet paper, diapers, used tissues), mixed packaging combining several materials that cannot be easily separated, and textile waste (worn clothes, damaged bedding).
Hazardous waste requires special management to prevent environmental contamination. This category includes batteries, chemicals (paints, solvents, cleaning products), expired medications, and small electronic devices (light bulbs, used electronics).
Bulky waste consists of large and heavy items such as old furniture and used appliances (refrigerators, washing machines). These are collected separately and often can be reused or recycled depending on their condition.
Construction and demolition waste includes materials like concrete, bricks, drywall, wood, and tiles. These require special collection and recycling procedures.
Proper household waste management is important for environmental protection. Correct waste separation at the source, recycling recoverable materials, and composting organic waste can significantly reduce the amount of waste sent to landfills. Public education and the implementation of effective waste management policies are essential for promoting a clean and sustainable environment.
Hazardous waste consists of materials that pose significant risks to human health and the environment due to their toxic, corrosive, flammable, or reactive properties. Proper management is critical to preventing contamination of soil, water, and air. Here are some key categories of hazardous waste:
Household chemicals include paints, solvents, strong cleaning products (bleach, oven and drain cleaners), and pesticides. These substances contain solvents and other toxic chemicals that can harm the environment and human health if not properly disposed of.
Batteries are a major source of hazardous waste. Alkaline, rechargeable batteries (such as those used in mobile phones and laptops), and car batteries contain heavy metals (lead, cadmium, lithium) and acids that are highly harmful if not managed correctly.
Electronic waste (e-waste), including computers, televisions, and mobile phones, contains heavy metals and hazardous substances that can pollute the environment if not properly recycled.
Pharmaceutical products, including expired or unused medications, can contaminate water and soil if improperly discarded. They should be returned to pharmacies or specialized collection centers.
Hazardous construction materials include asbestos, a known carcinogen, and sealants and adhesives that may contain toxic solvents.
Flammable liquids such as gasoline, diesel, and motor oils are highly flammable and toxic, requiring specialized disposal.
Corrosive substances, such as strong acids and bases (muriatic acid, caustic soda), are dangerous to skin and eyes and can cause severe burns.
Radioactive materials, including some smoke detectors and old medical equipment, contain substances that emit harmful radiation and require specialized handling and disposal.
Fluorescent lamps and mercury-containing bulbs contain mercury, a toxic metal that can severely impact human health and the environment.
Proper hazardous waste management involves separate collection, transportation, and disposal or recycling at specialized facilities to prevent health and environmental risks. It is essential that these wastes are not discarded carelessly and that local and national regulations regarding their handling are strictly followed.
In a typical household, various types of waste are generated, and proper management is crucial to minimize environmental impact. These types of waste can be classified as follows:
Organic waste includes food scraps such as vegetable and fruit peels, meat remnants, bones, eggshells, stale bread, and expired dairy products. Garden waste, such as dried leaves, grass clippings, wilted flowers, and branches, also falls into this category. These wastes are biodegradable and can be transformed into compost, a valuable natural fertilizer.
Recyclable waste consists of materials that can be reintroduced into the production cycle. Common recyclable items include paper and cardboard (newspapers, magazines, cardboard boxes, envelopes), plastics (water and beverage bottles, detergent containers, bags, food packaging), glass (jam jars, wine bottles, glass containers), and metals (aluminum cans, food tins, bottle caps). Recycling these materials saves resources and energy.
Non-recyclable waste includes contaminated items such as toilet paper, single-use tissues, diapers, and dirty food packaging, as well as mixed packaging materials like chip bags and coffee packaging, which are difficult to separate for recycling.
Hazardous waste requires special handling to prevent environmental contamination. This category includes household chemicals (leftover paint, solvents, strong cleaning products), batteries (alkaline, rechargeable), small electronic waste (compact fluorescent bulbs, LEDs, used electronic devices), and pharmaceuticals (expired or unused medications).
Bulky waste consists of large and heavy items such as old furniture (chairs, tables, broken cabinets) and large appliances (old refrigerators, washing machines).
Construction and renovation waste includes drywall scraps, wood pieces, tiles, paint, and adhesives used during renovations.
Managing this waste involves separate collection, recycling where possible, and composting organic waste. Hazardous waste requires specialized disposal to prevent environmental contamination. Education and awareness of proper waste sorting are essential to protecting the environment.
The decomposition time of waste varies significantly depending on the type of material and environmental conditions.
Organic waste, such as food scraps and plant materials, decomposes relatively quickly. For instance, vegetable and fruit peels break down in a few weeks to several months, while leaves and grass clippings take 2 weeks to a few months. Unprocessed wood may take 1-3 years to fully decompose.
Paper and cardboard, which are also biodegradable, have more variable decomposition times. Simple paper, such as newspapers and magazines, decomposes in 2-6 weeks, while cardboard can take between 2 months and 5 years, depending on its thickness and moisture levels.
Plastic materials present a much more problematic decomposition process. Plastic bags can take 10 to 20 years to degrade, PET plastic bottles may take up to 450 years or more, and other plastic packaging can take several hundred years.
Glass is a material that practically does not decompose completely. Glass bottles and jars may break down into smaller fragments over millions of years but remain in the environment indefinitely.
Metals have varying decomposition times. Aluminum cans can take 80 to 200 years to decompose, while metal (steel) cans take between 50 and 100 years.
Textiles also have different decomposition times. Cotton decomposes in 1-5 months, wool in 1-5 years, while polyester can take between 20 and 200 years.
Hazardous waste, such as chemicals and batteries, have very long decomposition times and can remain toxic for hundreds of years. For example, alkaline batteries may take over 100 years to fully decompose.
Electronic waste (e-waste) and pharmaceutical products present a significant challenge, as their components can persist in the environment for many years. Some plastic and metal components in electronics may last several hundred years.
Proper waste management and recycling are crucial to minimizing environmental impact and protecting natural resources.
Removal of non-salable inventory from accounting records
Expenses incurred for removing degraded goods from accounting records are tax-deductible when calculating corporate income tax.
VAT adjustment for non-salable inventory
According to current legislation, services paid to a recycling company for the destruction of goods are fiscally deductible.
Integrated waste management
We offer comprehensive and specialized solutions for the collection, disposal, and destruction of expired, damaged, counterfeit, confiscated, non-compliant, or specially regulated products.
Collection of electrical and electronic equipment
We provide integrated solutions for the efficient management of household and electronic waste, ensuring specific treatment for each category.