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EU: Public consultation on alignment of VAT rules with circular economy

Consultation is open until November 4, 2026.

September 11, 2026

The European Commission (EC) on September 10, 2026, launched a public consultation on the alignment of VAT rules with the principles of the circular and low emission economy.

According to the EC release, the consultation seeks stakeholder input on how VAT rules can be adapted to better support circular business models, focusing on three key areas:

  • Treatment of second-hand goods
  • Destruction of viable goods
  • VAT deduction rules for passenger cars used for business purposes

The consultation is open until November 4, 2026.

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