How to Charge Pfand Bottle Deposit Fees on Your Shopify Store

Quick Answer 

The best way to charge Pfand bottle deposit fees on your Shopify store is by using an app like Magical Product Fees, which automatically applies fees as a separate line item at checkout, ensuring compliance with German regulations.

Detailed Answer

The best way to charge Pfand bottle deposit fees on your Shopify store is by using an app like Magical Product Fees, which automatically applies fees as a separate line item at checkout, ensuring compliance with German regulations. 

It’s important to charge Pfand fees in Germany because Shopify merchants selling beverages in Germany must charge Pfand bottle deposits to comply with the German Packaging Act (VerpackG). 

Since it’s required, and there isn’t built-in way to add Pfand fees on Shopify, merchants have to look for ways to apply these fees to remain in compliance with German laws. There are a few ways that you could apply Pfand fees on your shopify store, each with pros and cons.

1. Manually include them in product prices, but baking Pfand fees into product prices makes them less transparent, which can confuse customers and create compliance risks.
2. Hire a developer to build a custom-coded solution, but this is time-consuming and very expensive, often costing thousands of dollars.
3. Use a Shopify app. This is the best way to automatically charge and track Pfand fees on your store. Apps are easy to use, install and are affordable. 

Using an app like Magical Product Fees is the best way to apply Pfand fees on your Shopify store. 

The benefits of using an app means that you will automate fee collection and ensure compliance with minimal effort. 

• Easily apply Pfand fees to your products on Shopify
• Add Pfand fees as a separate line item at checkout.
• Make the fee taxable so you are VAT-compliant.
• Track and report fees accurately to avoid regulatory fines.
• Support from a team of experts

By using an app you will avoid compliance and regulatory issues related to Pfand fees. Failure to charge Pfand fees correctly can lead to fines of up to €100,000 per incident, which can be devastating for an independent online merchant. This is why using an app that does everything for you is a better idea than trying to create a workaround to charge Pfand fees. 

Video Explainer

I know figuring out how to add Pfand fees to your Shopify store can be daunting, so I put together this quick 30-second video to break it down. I’ll show you the easiest way to set up Pfand fees and keep your store compliant.

Supporting Answers

What Are Pfand Fees?

Germany’s Pfand bottle deposit system is one of the most effective recycling programs in the world, requiring merchants to charge a deposit on beverage containers that customers can later reclaim when they return empty bottles.

There are two types of Pfand deposits:

1. Einwegpfand (One-way deposit) – €0.25 per single-use container (e.g., plastic soda bottles, cans).
2. Mehrwegpfand (Reusable deposit) – €0.08 to €0.15 per bottle (e.g., refillable beer or water bottles).

These deposits are legally mandated, so merchants must follow strict regulations to remain compliant.

What Pfand Laws Do Shopify Merchants Need to Follow?

Using an app ensures you correctly charge and display Pfand fees, keeping your store compliant with German regulations. In Germany, beverage retailers must:

1. Charge the correct deposit fees at checkout.
2. Clearly display Pfand fees as a separate line item.
3. Provide a way for customers to return bottles, including via mail. Most customers will prefer returning their bottles at local vending machines or collection centers for convenience, but online stores must make themselves available to accept returns.
4. Register with the LUCID Packaging Register if importing beverages or manufacturing them in Germany.

In February 2024, an online retailer in Germany failed to properly label imported beverages with the correct Pfand label and failed to charge the  €0.25 deposit per item. The merchant was fined a 5-figure penalty by the environmental agency in their state.

Fines of this size can financially ruin an independent online business. Merchants and distributors must prioritize making sure that Pfand fees are properly charged and that they are compliant. 

How Do I Charge German Pfand Fees on Shopify?

Shopify does not have a built-in solution for adding fees at checkout. The workarounds that exist come with significant drawbacks:

1. You could build a fee into calculated shipping rates, but this won’t adapt to the quantity which may lead to undercharging.
2. You could create products for fees, and then instruct customers to select or add these manually, but this can lead to a clunky user experience. Customers could also avoid paying fees altogether, leading to non-compliance.
3. You could hire someone to create a custom solution for your Shopify store to add fees as separate line items, but this is very expensive and likely not feasible for most small-to-medium sized stores.

Using an app like Magical Product Fees is the easiest way to automatically apply fees and ensure compliance. It’s also an affordable option for most stores.

Why Use Magical Product Fees?

Magical Product Fees is the best app for applying Pfand fees to your Shopify store.

• Automates Pfand fee application as a separate charge.
• Ensures legal compliance with German Packaging Act regulations.
• Provides reporting tools to track and manage deposits.
• Supports tax settings to apply VAT where required.
• You also receive human support.

How Do I Display Pfand Fees to Customers?

For transparency and compliance, Pfand fees should be clearly shown on:

• Product pages (e.g., “+ €0.25 Pfand deposit”).
• Cart and checkout screens (as a separate fee line).
• Receipts and invoices for proper record-keeping.

How Do I Handle Pfand Returns on Shopify?

Merchants must accept bottle returns and refund deposits.

• Online stores should provide a return mailing address.
• Prepaid shipping labels may be required to cover return costs.

Real-Life Experiences

My personal experience with Pfand bottle deposit fees on shopify.

I once worked with a store in Frankfurt that wanted to use a subscription app alongside a fees app to manage Pfand charges, however the two apps conflicted. Fortunately, I was able to loop in the app developers from Magical Product Fees to resolve the issue and ensure both apps worked seamlessly together. Conflicts like this are hard to predict, but this incident highlights the importance of having a reliable app and supportive team ready to help you overcome unexpected bumps in the road.

Kyle Godon, Shopify App Expert

Key Takeaway 

For Shopify merchants selling beverages in Germany, charging Pfand fees correctly is non-negotiable. The best way to stay compliant, avoid fines, and provide a seamless customer experience is to use an automated fee app like Magical Product Fees.

Magical Product Fees

The Magical Product Fees app is a fast and easy way to build, customize, and attach fees to products or entire orders.