IMG_0389

Adequate amendment of the EU VAT directive important to boost the circular economy

Date: March 21, 2017 · In: Circular Economy, Green Economy, Positions

Ecopreneur.eu responses to European Commission Public Consultation on the reform of VAT rates:

Ecopreneur.eu calls for amendment of the EU VAT Directive 2006/112/EC to allow a low VAT rate for circular goods and services. If adequately used, value added tax can strengthen the circular economy by transferring clear prices signals to consumers and producers throughout the supply chain.

A lack of demand for circular goods and services is the main bottleneck for leading companies to accelerate and mainstream their introduction. Boosting demand requires price incentives along the full circle, and the VAT is the only one aiming at consumers.

Next to VAT differentiation, Ecopreneur.eu asks for a tax shift from labour to raw materials, a massive training program for Green Public Procurement, improvement and expansion of Extended Producer Responsibility schemes, and minimum Ecodesign requirements on resource efficiency.

Read full Position Paper VAT Ecopreneur.eu