- The European Commission is considering “green VAT” reforms to support the circular economy and influence business behavior toward lower-carbon models.
- A key focus is changing VAT rules on unsold goods so donating stock is easier and more attractive than destroying it, with possible charity exemptions and anti-abuse safeguards.
- VAT treatment of donations varies widely across EU countries, creating inconsistency and complexity.
- Brussels is also reviewing second-hand/refurbished goods VAT rules to simplify calculations, reduce fraud, and harmonize cross-border treatment.
- Company car VAT rules may be adjusted to favor electric vehicles and reduce deductions for petrol and diesel fleets.
Source: vatcalc.com
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.
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