EU: New initiative on VAT and circular economy

 

The EU Commisson has announced the preparation of a new public consultation on VAT and circular economy.

The initiative aims to facilitate the transition to a circular economy by updating selected VAT rules that may impede circular business models and sustainable consumption. It focuses on the VAT treatment of second-hand goods and circular value chains, the destruction of usable goods, and VAT deduction rules for passenger cars. The initiative seeks to ensure that the proposed measures are proportionate, resistant to fraud, and fully aligned with the principles and framework of the EU’s common VAT system.

Follow us for further details.