Applicable VAT Rate for Services Supporting Household Waste Collection and Treatment for Local Authorities

Since March 1, 2026, a reduced VAT rate of 5.5% applies to services related to the collection and treatment of household and similar waste provided to certain local authorities.
This rate covers services such as transport, transit, storage of waste residues, and maintenance of waste management equipment, provided that the cost of supplies used does not exceed 50% of the total service cost.
If the value of supplies exceeds 50% of the total cost, the supplies are taxed separately (usually at 20%), and the service portion remains at 5.5%, requiring a split in VAT rates.
Maintenance and repair services for waste processing equipment (e.g., loaders, screeners, shredders) are included under the reduced rate, subject to the same supply cost condition.
The reduced rate does not apply to the delivery of goods, which are taxed at their own applicable VAT rate.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.