Cut VAT for the Circular Economy

In December 2021, the European Council came to an Agreement on updated rules for VAT rates.

According to the Agreement, if social enterprises active in reuse, repair and recycling can identify themselves as ‘organisations engaged in welfare or social security work as defined by Member States and recognised as being devoted to social well-being by Member States’ the goods that they sell (being new or second-hand) or the services they provide can be subject to reduced VAT (no less than 5%).

CRNI believes it is also essential that preparation for reuse is considered, and that all purchases made by social enterprises in preparation for reuse are subject to reduced VAT.

Read our manifesto here.

• October 4, 2022