European Commission launches public consultation on VAT and the circular economy

The European Commission has launched a public consultation on VAT and the circular economy, focusing on three areas: the treatment of second-hand goods, the destruction of usable goods, and VAT deduction rules for company cars. The consultation is part of the forthcoming Circular Economy Act and will run for eight weeks through the “Have Your Say” portal, until 4 November 2026. The related evaluation and impact assessment are expected to conclude in early 2027, and their findings will inform a legislative proposal to amend the VAT Directive.