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What is EcoVadis and why is it gaining traction?

EcoVadis is a global platform that evaluates companies across four areas: environment, human rights and labor, ethics, and sustainable procurement. Rated companies receive points (0–100) and a medal – ranging from bronze to platinum – based on the evidence they provide.

A good rating is not just a pat on the back – increasingly, it determines whether a company can collaborate, compete in tenders, or sign a contract with an international client.

When and for whom is EcoVadis certification valuable?

EcoVadis certification is particularly important for companies operating within the supply chains of large corporations – including manufacturers, distributors, service providers, and logistics partners. It also brings added value to organizations bidding for contracts that include ESG requirements, seeking to strengthen their responsible brand image, preparing for CSRD-aligned reporting, or planning expansion into new markets.

The assessment process – step by step

1. Registration on the platform and payment of the license.
2. Collection and/or preparation of data to complete the questionnaire.
3. Filling in the questionnaire tailored to the company’s industry and size.
4. Attaching supporting documents (e.g. policies and procedures).
5. Review and analysis of the questionnaire by EcoVadis experts.
6. Receiving the report with the score and potential medal.
7. Sharing the result with business partners.

The rating is valid for 12 months. It can be updated and improved, allowing companies to monitor progress and strengthen ESG initiatives.

EcoVadis as part of an ESG strategy

For many companies, EcoVadis is more than just a client requirement – it is a development tool and a key component of their ESG strategy. By integrating it with GRI, CSRD, or other systems (e.g. CDP), organizations:

• collect data once and use it multiple times,
• improve communication with clients and investors,
• are better prepared for regulatory and market changes.

The rating can also serve as a starting point for internal audits, environmental implementations, and the development of an ESG strategy. The main challenges include gaps in documentation, lack of knowledge, and limited understanding of the methodology. Frequently, companies also lack a designated person responsible for ESG issues.

How do we help companies achieve a high score?

A high score in EcoVadis brings tangible business benefits. It strengthens customer and partner trust, supports contract acquisition, and provides a competitive edge. That is why it is worth working with a consultant who will guide you smoothly through the assessment process – particularly during the first reporting attempt.

We support companies at every stage:

• Conducting a readiness audit.
• Assisting in completing the questionnaire in line with the criteria.
• Supporting the collection and preparation of documentation.
• Advising on actions to implement to increase the chance of achieving a medal.

Gain an advantage with EcoVadis

EcoVadis has already assessed over 150,000 companies worldwide, helping them manage risks and improve ESG performance. In 2024, the average company score was 53.4 points, with only 6–28% of organizations reaching the “Advanced” or “Outstanding” levels. Your company can become one of them.

Penalties for failure to submit VAT returns

Penalties for failing to file VAT returns (JPK_V7M or JPK_V7K) on time arise from Article 56 §4 of the Fiscal Penal Code (KKS). Sanctions are imposed when a taxpayer fails to submit a return despite having disclosed the tax base, and the breach is considered socially harmful. The penalty also applies to failing to submit zero returns.

Penalty amounts

A fine for a tax offence ranges from 1/10 to 20 times the minimum wage (in 2025: from PLN 430 to PLN 86,000). In summary proceedings, the maximum fine is twice the minimum wage (PLN 8,600). If failure to submit a return results in a tax shortfall exceeding five times the minimum wage (PLN 21,500), the act may be classified as a fiscal offence, punishable by a fine of up to 720 daily rates (from PLN 143.33 up to PLN 1,720,000).

Penalties for late payment of VAT

According to Article 57 §1 KKS, penalties for late payment of VAT apply in cases of “persistent” non-payment of tax, meaning repeated or prolonged non-compliance. A one-time delay typically does not result in criminal sanctions but does generate VAT interest charges and may trigger further enforcement proceedings by the Tax Office.

Penalty and interest amounts

A fine for a tax offence ranges from PLN 430 to PLN 86,000, and up to PLN 8,600 in summary proceedings. VAT late-payment interest in 2025 amounts to 16.5% annually (double the NBP lombard rate + 2%). If the arrears do not exceed PLN 8.80, no interest is charged. Reduced interest (50%) applies if a correction is submitted within 6 months of the filing deadline and the tax is paid within 7 days of correction, provided the correction and payment are made voluntarily by the taxpayer.

Penalties for late VAT adjustments

Penalties for late VAT adjustments (Article 112b of the VAT Act) apply in cases of understated tax liabilities or overstated VAT refunds. Sanctions are imposed if the correction results from a tax audit or if significant errors are detected (e.g., deduction of VAT from ineligible services).

Penalty amounts

A sanction of 30% of the understated liability or overstated refund applies. In the case of corrections following a tax audit – 20%. If the taxpayer files a correction before an audit and pays the liability with interest, penalties can be avoided. An administrative fine of PLN 500 per error in JPK_V7 that prevents verification may be imposed if the taxpayer fails to correct the records within 14 days of the tax authority’s request.

Penalties for failure to submit VAT-UE (ECSL)

Penalties for failure to submit VAT-EU returns on time (Article 56 §4 KKS) apply to taxpayers registered for VAT-EU who do not report intra-Community supplies (WDT), intra-Community acquisitions (WNT) or cross-border services. Sanctions may be imposed even if no tax shortfall arises.

Penalty amounts

A fine for a tax offence ranges from PLN 430 to PLN 86,000, and up to PLN 8,600 in summary proceedings. In cases of intentional action resulting in significant shortfall (over PLN 21,500), the act may be considered a fiscal offence, punishable by a fine of up to 720 daily rates. Filing a voluntary disclosure before the initiation of explanatory proceedings by the tax authority may release the taxpayer from penalty.

Penalties for failure to submit Intrastat

Penalties for failure to submit Intrastat returns are set out in the Public Statistics Act and apply to businesses exceeding the Intrastat thresholds.

Penalty amounts

An administrative fine of up to PLN 5,000 per case for failure to submit Intrastat declarations. In cases of deliberate evasion, fiscal fines may be imposed under the KKS (ranging from PLN 430 to PLN 86,000). Sanctions are less frequently applied if the taxpayer files overdue declarations following a summons from the Central Statistical Office (GUS).

To reiterate, penalties for failure to submit VAT, VAT-EU or Intrastat returns, as well as for late VAT corrections, can significantly burden a company’s finances. Proactive tax compliance management and professional advisory support are key to avoiding sanctions.

What is the SUP Directive?

The SUP (Single-Use Plastics) Directive is a regulation aimed at reducing the production and use of single-use plastic products. In practice, this means that EU member states have introduced a range of measures restricting the production, distribution, and recycling of such items.

What changes did the SUP Directive introduce?

Implementation of the SUP Directive has varied across Europe, with each country tailoring its approach to local needs. In Poland, since 2021, manufacturers are required to mark plastic packaging with the “dead turtle” pictogram—a stark reminder intended to raise consumer awareness of plastic pollution. The country has also banned the sale of selected single-use products, including plastic cutlery, plates, and straws.

Similar measures have been taken in other EU states. Spain and France have banned plastic cutlery and the use of expanded polystyrene packaging. Germany went a step further by introducing mandatory charges for plastic bags, which significantly reduced their consumption. These countries have also adopted stringent recycling regulations to ensure that as much plastic as possible is reused rather than being disposed of in landfills.

A challenge for business, an opportunity for the environment

For businesses, the SUP Directive has brought numerous challenges. Companies have had to invest in new technologies, revise production processes, and adapt to new legal requirements. Examples include replacing plastic bags with paper alternatives in grocery stores and switching to biodegradable packaging for various products.

On the other hand, the directive has opened new avenues. Eco-packaging manufacturers have seen a surge in demand, with innovations such as single-use tableware made from wheat bran gaining traction.

Shaping new consumer habits

The SUP Directive has also prompted a shift in end user behavior. An increasing number of consumers are opting for reusable products, such as stainless steel water bottles or eco-friendly shopping bags. This shift has been driven not only by regulatory demands but also by educational campaigns highlighting the environmental impact of our daily choices.

Looking ahead: A circular economy

The ultimate goal of the SUP Directive is not only to reduce plastic use, but also to foster a circular economy. This model emphasizes designing products for durability, reusability, and recyclability. The road ahead may still be long, but the early efforts reflect a clear and committed direction.

The SUP Directive is proof that sustainable development is more than a buzzword—it is a tangible direction in which the modern world is heading. The question we must now ask ourselves is: what more can we do to further reduce our impact on the planet?

The pillars of sustainability

To fully grasp the meaning of sustainability, it is crucial to understand its three core pillars:

• Environmental – focused on environmental protection, combating climate change, safeguarding air and water quality, and preserving biodiversity.
• Social – includes initiatives promoting social equality, health, education, and improved quality of life.
• Economic – aims for economic growth that does not compromise environment, but instead manages and resonsibly utilises its potential.

For sustainability to a lasting impact, these these three elements must work in harmony.

Sustainability in practice

The idea of sustainability translates into tangible actions across various sectors of life and the economy. Some examples include:

• In agriculture – promoting organic farming and responsible use of natural resources.
• In construction – designing energy-efficient, low-emission buildings.
• In manufacturing – reducing waste and improving production management.

The goals of sustainability are supported by different groups — consumers, companies, and public institutions:

• Consumers, by making responsible purchasing decisions, support producers that adhere to sustainable practices.
• Businesses, by implementing sustainability strategies based on the three pillars.
• Governments, by introducing legislation that supports both ecology and the economy, investing in education, environmental regulation, and new technologies.

A sustainability strategy in business

A growing number of companies now understand how to implement sustainability strategies to meet customer and market expectations. Notably, what was once considered merely a passing trend, has become a recongised and actionable business strategy.

A well-designed sustainability strategy delivers measurable benefits:

• reduced resource consumption,
• lower costs,
• enhanced brand image,
• increased customer and partner trust.

Sustainability in business is becoming more than just a marketing tool. It is an approach that genuinely influences how companies operate and interact with their environment. Its relevance is growing each year, as environmental and social responsibility becomes the foundation of long-term success.

What are the benefits of sustainability?

The benefits of sustainability can be noticed across multiple levels — for both the planet and its people. The key advantages include:

• reduced use of natural resources,
• lower CO₂ and pollutant emissions,
• clean air and water accessible for present and future generations,
• protection of biodiversity and ecosystems,
• improved quality of life and health,
• development of green technologies and innovation.

By implementing sustainability, we can align economic progress with ecological preservation, building a more resilient and stable socio-economic system.

Conclusion

Sustainability is more than just a buzzword — it’s a practical response to modern-day challenges. Understanding what it is, what it involves, as well as its goals, pillars, and benefits allows us to better appreciate its importance and make conscious choices — as consumers, entrepreneurs, and citizens.

Collective efforts to protect the environment, ensure social justice, and strike a balance between ecology and the economy are key to a better future — for ourselves and generations to come.

Greenwashing mistakes

Earlier this year, the European Parliament approved a general approach for the proposal of a Green Claims Directive. If approved, this legislation would oblige companies to provide evidence for any environmental claims made prior to selling their products. 

To avoid the reputational (and perhaps soon, regulatory) risks of greenwashing, companies can start by avoiding what are known as the “7 sins of greenwashing”: 

1. Hidden trade-offs: Claims need to consider the entire lifecycle when making claims about benefits. 
   For example, paper from sustainably harvested forests is not necessarily environmentally beneficial because other parts of the paper-making process have environmental impacts (e.g., chlorine in bleaching or greenhouse gas emissions in production) that are equally important.  
2. No proof: Claims need to have accessible supporting information (either internally or a third-party).   
   For example, often facial tissues or other hygiene products will claim some percentage of recycled content without providing any evidence.  
3. Vagueness: Claims should be specific and accurate to avoid misunderstanding by the consumer.  
   For example, many chemicals and substances that are “natural” are still harmful (e.g., arsenic, uranium, or mercury).  
4. Worshipping false labels: Claims cannot give the impression (either verbally or visually) that a third-party has endorsed the product or brand where this endorsement does not exist. 
   For example, putting an EU Eco-label on a product where you have not been verified by that organisation.  
5. Irrelevance: Claims must be true but also must be important and pertinent.  
   For example, claiming that something is “CFC-free” is not very useful for consumers in modern day because CFCs (chlorofluorocarbons) have been banned for most uses since the Montreal Protocol.  
6. Lesser of two evils: Claims of comparisons might be true within the product category but still ignore (and distract the consumer from) the harmful impacts of the product category as a whole.  
   For example, organic cigarettes are preferrable to non-organic but are still harmful to the body and dangerous to human health.  
7. Lying: Claims must be true.  For example, companies cannot claim to be ENERGY STAR, FSC, or any other certifications that it does not have.  

Greenwashing examples

While the specific terms used might differ from company to company, here are a few general examples of terms to avoid: 

For generic terms like this, it’s best to explain why or how it’s eco-friendly etc. For example, do you use renewable energy in production? Discuss that. Does the fabric only consist of natural fibres? Mention that. 

It also helps to have a third-party verification. For example, the FSC standard for paper production, where applicable, might use terms like “responsibly sourced” with clear evidence provided by the certification. 

In short: specificity and substantiation are key. 

Sources:
– European Parliament Think Tank “’Green Claims’ Directive: Protecting Consumers from Greenwashing” (2024) 
– CPS Bureau Veritas “EU Green Claims Directive: What You Need to Know” (2024) 
– UL Solutions “Sins of Greenwashing” (n.d.) 

E-invoicing in Mexico

CFDI (Comprobante Fiscal Digital por Internet) is an electronic invoice composed of two components: an XML file (technical format) and an optional PDF (visual representation for the recipient). The invoice must be validated by the Mexican tax authority – the Servicio de Administración Tributaria (SAT). Taxpayers are required to submit the invoice to the authority in real time. Since 2014, the obligation to issue CFDI applies to all entities registered for tax purposes in Mexico – including foreign businesses.

Before a business can access the CFDI system, it must first take several key steps. This includes obtaining an electronic signature (FIEL) and a Digital Seal Certificate (Certificado de Sello Digital, CSD) from the tax authority. Additionally, it is mandatory to use a PAC (Proveedor Autorizado de Certificación) – a government-authorized provider that validates and submits invoices to SAT.

The responsibilities of a PAC include:

• Receiving the XML – formatted invoice prepared by the taxpayer
• Authorizing the invoice (i.e., formally validating the data)
• Submitting the approved document to SAT, which assigns it a unique UUID and returns it within 72 hours with a digital seal, ready to be forwarded to the recipient.

Are there penalties for not issuing a CFDI?

Yes. Failure to issue electronic invoices can result in penalties for non-compliance with e-invoicing obligations. In addition, the recipient loses the right to deduct VAT. It can also hinder cooperation with local partners, who may refuse to accept invoices not authorized under the CFDI system.

Does a foreign company need a physical presence in Mexico to issue CFDI invoices?

No. A physical presence in Mexico is not required. However, the company must be VAT registered, hold an electronic signature (FIEL), and cooperate with a local PAC. In practice, this often necessitates working through a local representative or advisor.

Must CFDI invoices be issued in Spanish?

Yes. All CFDI documentation – including both the XML and PDF files – must be issued in Spanish, as per the requirements of the Mexican tax authority. If needed, companies may attach unofficial translations for foreign clients.

Is a PDF file sufficient as an invoice?

No. The PDF is only a visual representation of the invoice for reference. Only the XML file, approved by SAT and containing the UUID, is considered the legally valid version of the invoice in Mexico.

How can EFF help?

We offer end-to-end support for VAT registration in Mexico and ongoing tax compliance. We cooperate with a locally authorized PAC to ensure seamless implementation of CFDI-compliant e-invoicing for our clients.

Key VAT changes

• Romania’s standard VAT rate will rise from 19% to 21%. This marks the first increase in the standard rate since it was reduced in 2017 and aligns with broader regional fiscal tightening trends.
• A new reduced VAT rate of 11% will replace most current reduced rates, including the widely used 5% and 9% rates. This leaves only two applicable VAT rates in the Romanian system going forward:
  • 21% – Standard rate
  • 11% – Reduced rate

What falls under the 11% VAT rate?

The following goods and services will shift to the 11% reduced rate:

• Food
• Medicines
• Books and printed publications
• Water services
• Hotel accommodation and restaurant services

This adjustment is expected to affect pricing and compliance across multiple sectors, particularly in retail, hospitality, and healthcare.

There is a temporary exemption for certain housing supplies. These will retain the 9% VAT rate until August 1, 2026, offering a transitional period for developers and real estate businesses to adapt.

Potential future adjustments

The Romanian government has indicated that the VAT rate for hotel and restaurant services could rise to 21% in the future, subject to further review. Businesses in these sectors should closely monitor legislative developments in the coming months.

Implications for businesses

These VAT changes will require updates to invoicing systems, pricing strategies, and compliance processes. Businesses supplying or purchasing goods and services in Romania should review their contracts and systems to prepare for the new rates.

For more detailed analysis, see: https://mfinante.gov.ro/static/10/Mfp/transparenta/proiectLegemasurifiscale_03072025.pdf

The importance of VAT registration in Mexico for your business

Entering the Mexican market provides your business with access to a large consumer base of over 126 million people, 67% of whom shop online. Prominent marketplaces such as Amazon and Mercado Libre maintain a strong presence in the region and enable direct sales from the European Union. Selling in Mexico also facilitates simplified export to the US and Canada, as Mexico is part of the USMCA free trade zone – all while offering significantly lower entry costs than direct expansion into the US.

Who should consider VAT registration in Mexico?

This service is the right fit for your business if you:

• are planning to expand beyond Europe, especially into Latin America,
• are considering B2C sales to Mexico via your own store, Amazon, or Mercado Libre,
• want to operate legally and handle VAT in full compliance with local regulations,
• don’t yet have a structure or registration in Mexico and require comprehensive support from day one,
• are looking for a reliable partner to guide you through the registration and compliance process step by step.

EFF’s end-to-end VAT support in Mexico

• VAT registration in Mexico,
• Submission of required declarations and reports,
• Liaison with local tax authorities (SAT – Servicio de Administración Tributaria),
• Advisory support regarding e-invoicing and local compliance requirements.

Our specialists will guide you through every step of your market entry into Mexico – get in touch with us to learn more.

These taxonomies were designed to drive investment in “green” projects by labelling certain activities as “sustainable” through evidence-based classification. However, critics argue that these frameworks can be overly burdensome for companies and are not practical. 

UK’s green Taxonomy – the timeline

• 2020
  UK Chancellor of the Exchequer, Rishi Sunak, proposed several sustainable finance measures, including a green taxonomy to provide a common framework for understanding economic activities in the transition to a more sustainable economy and meet environmental targets. 
• 2021
  The Green Technical Advisory Group (GTAG) was launched to advise the government on implementing the taxonomy and published its first updates later that year, recommending alignment with the EU Taxonomy but tailored to UK priorities. 
• 2022
  In late 2022, the government announced that it was struggling to develop the secondary legislation due to its complexity and a lack of regulatory bandwidth to adequately consider all relevant sectors. 
• 2024-25

  The consultation was open for twelve weeks, from mid-November of 2024 until early-February of 2025. They received only 150 responses, with the largest group (59) coming from the financial services sector. Trade bodies also represented a large input (57), but other sectors also offered feedback. 

  Only about 45% of respondents had a favourable view of the taxonomy, with 55% holding a mixed or negative view. Many cited concerns over “the real-world application” while others argued that other elements of the sustainable finance framework should take priority. 

• 2025
  The government decided, based on the consultation results, to drop its efforts to develop the green taxonomy, proposing to focus on other avenues toward its environmental targets. 

Reactions

Reactions to the decision are mixed. The UK Sustainable Investment and Finance Association deemed it “disappointing” to omit the green taxonomy from the broader UK sustainable finance framework. Their head of policy and regulatory affairs, Oscar Warwick Thompson, stated, “We now want to see swift delivery of commitments on transition plans and the sustainability reporting standards.” Meanwhile, head of responsible investment at wealth manager Quilter Cheviot, Gemma Woodward, was relieved by the decision, claiming that the industry is already overwhelmed by other legislation. 

Conclusion

It remains to be seen what the next steps are for sustainable finance in the UK, but this decision comes as the EU is also simplifying its Taxonomy, among other elements of the EU Green Deal earlier this year.  

Sources:

– Britain scraps ‘taxonomy’ plan for green investments. (July 2025). Virginia Furness for Reuters.
– Consultation Outcome: UK Green Taxonomy. (July 2025). UK Government. 
– Green Technical Advisory Group issues first recommendations to UK government on the Green Taxonomy. (October 2021). Raza Naeem, Victoria Hickman, and Stephen Clipsham for Linklaters. 
– New amendments simplify EU Taxonomy. (July 2025). Jan A. Müller for KPMG. 
– New independent group to help tackle ‘greenwashing’. (June 2021). UK Government.
– The UK Green Taxonomy. (January 2023). KPMG. 
– UK Becomes First Country in the World to Make TCFD-aligned Disclosure Mandatory. (November 2020). Mark Segal for ESG Today. 
– UK Drops Plans for Sustainable Finance Taxonomy. (July 2025). Mark Segal for ESG Today. 
– UK Green Taxonomy Consultation Response. (July 2025). UK Treasury. 
– UK Green Taxonomy Dies As Sustainability Regulations Face Global Pushback. (July 2025). Jon McGowan for Forbes.