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EU VAT Consultation on Circular Economy and Sustainable Business Models

  • On September 10, 2026, the European Commission launched an eight-week public consultation on how EU VAT rules could better support the circular and low-emission economy.
  • The consultation focuses on whether current VAT rules hinder circular business models, especially regarding second-hand goods, destruction of otherwise usable goods, and VAT deduction rules for passenger cars used for business.
  • The review is part of a broader evaluation and impact assessment running until early 2027, after which the Commission may propose amendments to the EU VAT Directive.
  • The initiative could lead to VAT rules that more directly support reuse, repair, resale, resource efficiency, waste reduction, and lower-emission business activities.
  • Stakeholders can submit feedback through November 4, 2026.

Source: vatabout.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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