Private copy on the refurbished: it’s over !

14/08/2023

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The private copying tax entered the cultural sector in 1985. It corresponds to the addition of a few euros to the price paid by an individual, on all devices or multimedia media that can store music or movies. The user can then copy works on a personal basis. Audio cassettes were first affected and then replaced with CDs and digital storage media.
In mid-2021, the Private Copying fee was extended to include refurbished tech devices. This new measure provoked strong reactions.

A tax deemed abusive

At the time of the implementation of the levy on second-hand smartphones and tablets, many reconditioning specialists have expressed their dissatisfaction. They denounced a measure endangering the reconditioned market in France. A novelty that also encouraged unfair competition, already started by foreign players not really concerned about the tax model in France.

With the private copying fee, the professionals of the reconditioned were then subject to a double taxation :

A refurbished smartphone had already suffered a first private copying fee at the time of its sale
At the time of its re-sale on the refurbished market, the same smartphone is again taxed

To better understand 👉 A new smartphone with a storage capacity of 64 GB is charged a fee of 12 euros, against 7.20 euros for its refurbished version (or 19.20 euros in total for a mobile sold in a new version and reconditioned in France).

On top of that, the actors of the sector noticed at the same time a general increase in prices. This finding automatically makes second-hand items less attractive to consumers.

Cancellation of the tax on refurbished smartphones and tablets

The Syndicat Interprofessionnel du Reconditionnement et de la Regeneration des Matériel Informatiques, Electroniques et Telécoms (SIRRMIET), has been fighting for 3 years to see the private copying fee on refurbished smartphones and tablets be cancelled. Good news: in December 2022, the Council of State shared its decision to cancel the private copying fee schedule!

This cancellation will take effect on February 1, 2023. There will be no retroactivity put in place, to avoid harm to the rights holders who benefit from the royalty. The Council of State considers that private copying must remain due between June 2021 and 1 February 2023. However, this rule will not apply for companies that have started or are in dispute since before that date.

Therefore a new scale will be discussed and voted by the private copying committee in the coming months. We will follow the subject very closely with SIRRMIET, with whom we fight to defend and promote refurbished tech products in France. Keep an eye out for updates !

Responsible tech products

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The Fulfillment Service accompanies companies, to help them enhance the products that sleep in their closets. From recovery to distribution, our experts manage their inventory in an all-in-one tool that simplifies life.

No more multiple intermediaries between companies and end markets. We take care of everything ! 🚀