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CBAM business impact: Tax department

Find out how the CBAM will impact your tax department's day-to-day work

CBAM Business Impact

Reporting strategy

As a CBAM declarant, you will have to submit quarterly CBAM reports, splitting out volumes per product, producer and importing country.

By 31st of March every year, you will have to submit a yearly CBAM declaration while ensuring reporting verification by an accredited verifier.

In addition, you will need to purchase CBAM certificates from competent authorities in the Member State in which you are based in order to import CBAM products.

Financial Impact

The higher the embedded emissions, the more CBAM certificates you will have to purchase. This will lead to a financial impact, requiring you to calculate how much your business will have to pay for CBAM certificates.

Certificate prices will be linked to the weekly average of ETS-allowances. At the end of each quarter, 80% of the embedded emissions need to be covered in the CBAM account.

Key actions for the Head of Tax

  • Collect data for the determination of the embedded emissions in goods that are most exposed to carbon leakage.
  • Compose and submit a report defining the total verified GHG embedded emissions for the development of production.
  • Set up an internal monitoring system and map your carbon footprint and origin of all emissions within the operations and value chain per product line.
  • Submit an annual CBAM declaration for the preceding calendar year.
  • Register installations located in third countries in the EU CBAM registry and appoint indirect customs representatives in the EU.
  • Calculating and reporting emissions will be crucial to meet the CBAM Regulation.
  • Continuously monitoring emissions to track the success of your carbon reduction strategy.
  • Considering a new legal framework when assessing the overall compliance of the company.