Merchant of Record and Eco-Taxes: EPR Compliance in European E-commerce

What is Extended Producer Responsibility (EPR) for online sellers in Europe

Extended Producer Responsibility, or EPR, is a European Union regulatory principle that assigns the seller the legal and financial burden of a physical product's entire lifecycle, from production to disposal. This includes the management, collection, and recycling of waste generated by packaging, packing materials, and components subject to special disposal.

Each member state applies EU directives according to its own rules, adopting internal regulations and requiring registration with specific environmental registers to calculate and pay the relevant eco-taxes.

When an e-commerce business expands across borders, it must comply with these requirements on every sales channel, from its proprietary website to marketplaces, ensuring full compliance with local EPR rules. The VAT OSS scheme, logistics planning, and payment collection build the operational infrastructure for selling abroad, while environmental compliance remains the condition that sustains the legal continuity of sales in every market.

How eco-tax checks work across proprietary e-commerce sites and marketplaces

Environmental compliance checks in Europe follow a verification model involving local public bodies, customs authorities, and marketplace operators. EU directives require marketplace platforms to verify the validity of sellers' EPR registrations before authorising sales.

On proprietary e-commerce sites, checks are carried out through inspections by local environmental authorities, cross-checks, and customs verifications on incoming goods. The absence of environmental registration data leads to cross-cutting operational and financial consequences:

• Suspension of marketplace sales with the automatic deactivation of catalogues lacking valid registration numbers.

• Penalties and disputes for proprietary e-commerce businesses, applied by foreign supervisory authorities in proportion to the volumes placed on the market.

• Automated checks conducted by platform algorithms and public databases cross-referencing tax data.

• Competitor reporting, initiated by local competitors to regulatory bodies regarding eco-tax irregularities.

Fragmentation across the 27 Member States and requirements in key markets

The European Union sets the general framework for Extended Producer Responsibility, but the coexistence of 27 distinct national regulations results in complex regulatory fragmentation. Each member state independently establishes its own rules, creating substantial operational differences:

• Exemption thresholds and eco-tax calculation criteria.

• Product categories subject to environmental restrictions.

• Reporting frequency and administrative deadlines.

• Official registers and local eco-organisations to join.

Below, the analysis of the three main Western European markets highlights the operational impact of this fragmentation for digital brands.

WEEE register and LUCID system for selling via e-commerce in Germany

Access to the German e-commerce market, whether via a direct website or a marketplace, requires two binding environmental compliance steps:

• WEEE Register (Stiftung EAR) for electrical and electronic equipment. The registration code is required by marketplaces to keep product listings active.

• LUCID System (Verpackungsgesetz) for tracking primary and secondary packaging. Cardboard boxes, protective films, and bubble wrap must be declared in advance. Financial contributions depend on the volumes of material placed in the territory.

EPR requirements in France with the AGEC law and UIN code

In France, the AGEC law (Anti-gaspillage pour une économie circulaire) extends producer responsibility to numerous product categories:

• Consumer electronics and small home appliances.

• Primary and shipping packaging.

• Textiles and footwear.

• Furnishings and furniture.

• Toys and DIY items.

Each sector refers to a dedicated eco-organisation. Each body issues a Unique Identification Number (UIN). The UIN code must be displayed on the proprietary e-commerce website and validated in marketplace settings.

Environmental regulations and the extension of EPR compliance in Spain

In Spain, the entry into force of Royal Decree 1055/2022 on packaging requires precise compliance parameters for any digital sales channel:

• Registration with the Registro de Productores de Producto, necessary to track primary, secondary, and shipping packaging placed on the market.

• Appointment of an Authorised Representative, mandatory for companies without a registered office in Spain to ensure legal responsibility and the payment of contributions.

Limitations of standard tax consultancy in managing eco-taxes

Traditional tax consultancy focuses on Italian and European tax legislation, handling obligations such as VAT, Intrastat listings, and OSS returns. Foreign environmental registers fall under the scope of special regulatory compliance. Direct management requires monitoring 27 different legislations, with heterogeneous requirements that vary based on the type of channel used, be it a D2C e-commerce site or a marketplace seller account.

How T-Data directly manages EPR compliance as a Merchant of Record

Under the Merchant of Record model, T-Data directly manages the legal, tax, and environmental obligations associated with cross-border sales. This approach is particularly relevant when it comes to Extended Producer Responsibility, where complexity increases with the presence of different obligations and registers in each country, such as WEEE and LUCID.

By entrusting T-Data with the management of these requirements, the brand can reduce bureaucracy and the risks associated with local compliance, focusing instead on commercial development. Compliance thus becomes not an obstacle to expansion, but an element that facilitates simpler, safer, and more sustainable growth across Europe.