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The European Commission opened an eight-week consultation on 10 September asking how VAT rules could better support circular and low-emission business models. The exercise is part of work connected to the planned Circular Economy Act and runs alongside an evaluation and impact assessment.
The consultation focuses on three areas: second-hand goods, the destruction of viable goods, and VAT deduction rules for passenger cars used for business. The Commission says findings are expected in early 2027 and will inform a legislative proposal to amend the VAT Directive; no change to the directive was adopted in this announcement.