All the answErs about CIRCULAR PLACE

Who is part of CIRCULAR PLACE?

CIRCULAR PLACE is constituted by the Collective Systems of Extended Producer Responsibility (SCRAP) belonging to the Waste Electrical and Electronic Equipment Coordination Offices.


Who can play a part in CIRCULAR PLACE?

The following can currently play a part in CIRCULAR PLACE:

  • Producers of electrical and electronic equipment affiliated to one of the SCRAPs constituting CIRCULAR PLACE for the waste management of their products.
  • Wholesale distributors.
  • Non-profit entities that want/need electrical and electronic equipment such as lighting equipment, IT equipment, air conditioners, electrical equipment, or other electrical and electronic devices, for energy poverty projects, rehabilitation for social purposes, or outreach and/or educational projects
Is CIRCULAR PLACE a free service?

The use of CIRCULAR PLACE is completely free of charge both for producers/distributors and for non-profit organisations.

  • If you’re a producer, you must be affiliated to one of the SCRAPs within the Waste Electrical and Electronic Equipment Coordination Office(http://www.ofiraee.es/).If you’re a wholesale distributor, you must either be a member of ADIME, have an AMBILAMP-AMBIAFME collection point, or go through an approval process by the SCRAPs playing a part in CIRCULAR PLACE. In the latter case, please contact CIRCULAR PLACE first
  • If you’re a non-profit organisation, you can check the requirements in order to play a part.
What are the requirements in order to receive donated material?
  • Be a public entity.
  • Be up to date with the payment of your tax and labour obligations.
  • Submit the requested documents, including company by-laws, to correctly complete validation.
  • If you’re requesting any of the products on the marketplace, you must accept the producer’s or distributor’s terms & conditions of delivery and documentation.
  • Provide documentation and possible visual material of the project in which the product will be used. Some donors may ask for project documentation to be sent to them after the donation.
  • Have a donation certificate for tax relief, whenever the donor requests it, for the book value of the material donated.

Eligibility requirements. NGOs


What kind of material can I find on CIRCULAR PLACE?

You can find all kinds of low voltage electrical and electronic equipment both in the domestic and professional field, such as monitors, screens, small appliances, light bulbs and lighting, electrical equipment intended for low voltage installations (power outlets, buttons, protections) for homes and buildings, and IT and telecommunication equipment.

How do I decide which organisation a certain item is donated to?

The choice of the organisation receiving a donation corresponds in all cases to the producer and the order of the request, provided that the organisation and the project meet the necessary requirements under the criteria established on CIRCULAR PLACE and at the discretion of the producer or donor of the material.

How long does it take from the time an organisation or manufacturer/producer applies to join CIRCULAR PLACE until it is operational on the platform?
  • Producers or manufacturers affiliated to a SCRAP participating in CIRCULAR PLACE should pre-register on CIRCULAR PLACE. Validation of access to CIRCULAR PLACE will depend on the SCRAP to which the producer is affiliated. The producer should mention it beforehand to the SCRAP to which they are affiliated.
  • ADIME distributors of electrical material should get in touch with ADIME first. Non-ADIME distributors should contact the administrators of CIRCULAR PLACE directly (info@circularplace.org)
  • Non-profit organisations should pre-register via the access specifically reserved for them. Once done, CIRCULAR PLACE will contact (by its own means or through a third party) the pre-registered user in order to complete the registration process properly.
How is the supervision of the good condition of the products, their collection, transport, and destination carried out?
  • With regard to the condition of the products, the producer/distributor guarantees that the donated product meets the requirements set out to play a part in CIRCULAR PLACE.
  • As for collection, transport and delivery at destination, the producer/distributor must indicate these terms & conditions on a case-by-case basis. They must be visible when the product is being offered, so that the non-profit organisation knows these terms & conditions before requesting the donation.
How is it ensured that the equipment ends up being used in facilities and for organisational activities and not for private use?

Whenever required by the donor producer/distributor, non-profit organisations must provide documentation and possible visual material of the project for which the product has been used before and after the donation.  See requirements to be an NGO.

Is there a manual or user guide that explains the workings of the marketplace in detail?

In the menu of the producer/distributor’s private area, there’s a link to the Producer User Guide in PDF format.

In the menu of the non-profit organisation’s private area, there’s a link to the Non-Profit Organisation User Guide in PDF format.

What's the difference between a 'product' offer and a 'bundle' offer?

Producers/distributors can submit offers in 2 ways:

  • ‘Product’ offer: this is an offer in which a single product is offered with a certain number of units available to donate. In this case, the non-profit organisation may request as many units as it requires, provided that it doesn’t exceed the number of units available.
  • ‘Bundle’ offer: this is made up of one or more products (these may be totally different) with different quantities for each type of product, so each bundle ordered will contain one or more products with set quantities. In short, it’s a set of products. The producer/distributor will also define the number of (identical) bundles available so that the non-profit organisation can choose a number of bundles that doesn’t exceed the number available.

The bundle offer is highly recommended when the producer/distributor has boxes or pallets with one or more products that they are not interested in separating. As far as possible, bundles should contain few product types.

I'm a non-profit organisation. What information will I have about the product offered on CIRCULAR PLACE?

Non-profit organisations choose the offer of products or bundles based on their description. Every product (whether individual or in a bundle) must have the following information in its description:

  • Product name
  • Photo of product
  • Product category (product type)
  • Units available to donate
  • Availability date: time displayed on CIRCULAR PLACE.
  • Brand
  • Producer (company offering it)
  • Description of basic features
  • Approximate weight of one unit (kg)
  • Any flaws (YES/NO) (as long as they do not affect its operation)
  • Warranty
  • Link to website
  • Additional documentation in a file (optional)

In addition, each offer will define:

  • Transport terms & conditions
  • Need for donation certificate: Required / Not required.
  • Number of available bundles (in the case of bundles)
If a product arrives in a poor condition, what is the procedure to follow?

Notify the producer/distributor and CIRCULAR PLACE of the product condition once received. If the product should be treated as waste, the SCRAP to which the producer/distributor is affiliated will take charge of its collection and subsequent handling.

Will CIRCULAR PLACE also include technical support for the products? Will they come with a warranty?

The service provided by CIRCULAR PLACE involves putting producers/distributors and organisations in touch for the donation of products. This service doesn’t include technical support for the products beyond that offered by the donor producer/distributor. The warranty is that which is provided by the producer/distributor at the time the product is offered.

Can organisations sell the donated products?

No, the products are for use in a project and are not for resale.

If an organisation were to sell the material, it would be immediately blocked in the system and access to all its users would be disabled.

What is a donation certificate for tax relief and which non-profit organisations can issue the certificate?

It’s a document issued by the recipient of the donation that proves the actual donation and which contains the following details:

  • Tax code of the donor and the organisation receiving the donation.
  • Confirmation that the donation is deductible: explicit mention that the organisation receiving the donation is a beneficiary of charitable contributions (Article 16 of Law 49/2002).
  • Date and amount of the donation.
  • Intended use of the donation.
  • The irrevocable nature of the donation.

The donation certificate for tax relief can only be issued by non-profit organisations that are beneficiaries of charitable contributions according to Article 16 of Law 49/2002.

Take a look at the document “TAX ASPECTS OF THE NEW WASTE LAW: VAT AND CORPORATE TAX” on the following link.

What is the tax relief for a donation for the CIRCULAR PLACE producer/distributor?

CIRCULAR PLACE producers/distributors, in their capacity as legal entities, will be entitled to deduct 35% of the value of the donation from the taxable base of corporate tax. In addition, for multi-year donations: 35% will be increased to 40% if the company or entity has made donations of equal or greater amount or value to the same foundation in the previous two financial years.

This deduction provides donations with better taxation status than if they were deductible expenses.

For these purposes, in no case must the deduction base exceed 10% of the taxable base of the tax period. The deduction may be applied to donations exceeding this limit in tax periods concluding in the ten consecutive years immediately following the contribution.

It is very important for producers/distributors to indicate in product or bundle offers (on CIRCULAR PLACE) whether they will need the donation certificate for tax relief from the non-profit organisations receiving the donation.

In the definition of offers in which a donation certificate is requested, there is the possibility of including the book value (in euros) of each product. It is not mandatory to provide this information, but it is important that the recipient of the donation has this information to prepare the donation certificate for tax relief.

Take a look at the document “TAX ASPECTS OF THE NEW WASTE LAW: VAT AND CORPORATE TAX” on the following link.

How should a producer/distributor value their donated products for tax relief?

In the case of donations of goods (as is the case of CIRCULAR PLACE), the deduction basis will be the book value at the time of transfer (Article 18, Law 49/2002):

  • Goods produced by the donor: manufacturing cost.
  • New goods acquired from third parties: purchase price.
  • Goods used by the donor: net book value (purchase price of amortisations).

For the purposes of the tax relief applicable for donations in terms of corporate tax, the values considered will be the net book values recorded on the date of delivery excluding VAT.

Take a look at the document “TAX ASPECTS OF THE NEW WASTE LAW: VAT AND CORPORATE TAX” on the following link.

Is there a maximum number of donations that an organisation can receive?

In principle, there isn’t a maximum number of donations that an organisation can receive over the course of a year. Donations will be made as long as common ground is found between the products available and the projects submitted.

What is the treatment of donations in relation to VAT?

In the new Law 7/2022 on Waste and Contaminated Soils for a Circular Economy, an amendment to Article 79 of Law 37/1992 of 28 December on VAT on Taxable Bases, and a new section to Article 91 thereof, has been included in the Third Final Provision, where the taxable base for VAT in the event of donations to a non-profit organisation is considered to be zero.

Non-profit organisations, at the time of declaring goods received as a donation on VAT Form 303, must not include a taxable base for the goods received, as their value for VAT purposes is zero.

In accordance with Law 37/1992 (Article 91.4) on VAT, producers or distributors who make donations to non-profit organisations must consider these operations as deliveries of goods with 0% VAT.  Furthermore, the taxable base that must be declared will be the net book value (purchase or production cost minus depreciation or amortisation) that the donated goods had on the date of delivery.

Take a look at the document “TAX ASPECTS OF THE NEW WASTE LAW: VAT AND CORPORATE TAX” on the following link.

How should a non-profit organisation consider donations in terms of corporate tax?

The income from the donation would be an income exempt from corporate tax, pursuant to Art. 6 of Law 49/2002 of 23 December on the Tax System for Non-Profit Organisations and Tax Incentives for Charitable Contributions.

The donation, if in kind, should be considered at market value or fair value and accompanied by a certificate or document.

Donations received must be communicated to the Spanish Tax Agency by submitting Information Form 182 each year in the month of January.

Take a look at the document “TAX ASPECTS OF THE NEW WASTE LAW: VAT AND CORPORATE TAX” on the following link.

Is donated electrical and electronic equipment considered a product placed on the market according to Royal Decree 110/2015?

The donation of electrical and electronic equipment considered in the different categories of Royal Decree 110/2015 (Annex III) is interpreted as market placement, so producers/distributors must be responsible for its collection and treatment at the end of its lifespan according to the obligations laid down by Royal Decree 110/2015. Therefore, the product must be reported on the declaration platform as if it were a sale.