New application of the Eco-contribution in the building sector
From the 1st of January 2023: the Eco-contribution also targets the building sector.This contribution concerned till now companies in the production or marketing of electrical, electronic and furniture products.
The Eco-contribution: what are the terms?
This applies to sellers, importers, marketers, service providers in this sector.
2 payment methods:
• Either the Eco-contribution will be invoiced directly by your supplier (recorded in 607XXX),
• Or your company will pay thiseco-contribution to an approved eco-organisation (use of an account 611xxx).
The Eco-contribution should be neutral as it is charged back to the customer.
However, unlike VAT, the taxpayer who recharges it, assumes the risk of non-recovery. The cost of the Eco-contribution must be mentioned in the general conditions of contracts.
As far as the invoice is concerned, this cost is one of the elements of the cost price which must be incorporated into the unit price excluding tax of the product appearing on the invoice.
Where appropriate, it may be disclosed, preferably at the foot of the invoice.
The Eco-contribution: environmental Code, art. L 541-10-2
If a supplier chooses to inform its customer of the cost of waste management, it is recommended that this be mentioned at the bottom of the invoice, so that this information does not create any ambiguity or confusion with the net unit price excluding tax.
The supplier is neither obliged nor prohibited to indicate this in his tariff.
If the supplier wishes to exclude Eco-contribution from the price reduction base, commissions or service fees, he must state this clearly in the pre-contractual and contractual documents.
• Is taken into account in the cost of the inventory,
• Is included in the VAT calculation basis,
• Paid to an eco-organisation corresponds to a waste management cost that does not constitute a tax,
• Is re-invoiced by the producer, seller or marketer with the risk of non-collection at his expense.
If the customer has not paid the invoice, the person liable for the eco-contribution cannot recover the amount he has paid to his suppliers or the eco-collection agency.
The Eco-contribution: E-invoicing and Ereporting
Decree 2022-1299 of 7-10-2022 regarding E-invoicing and Ereporting:
The Eco-contribution re-invoiced by the producers and distributors of household electrical and electronic equipment are part of the compulsory information on the invoices;
The same obligation is to be expected for the new Eco-contribution in the building industry.
There are 8 complementary mandatory mentions of which additional mandatory information on invoices are required from the first of January 2026: Eco-participation (C. envir. art. L 541-10).
Everyone to your billing software!
Marie-Christine MEHENNI, Endrix Partner, Chartered Accountant and Statutory Auditor