The Circular VAT consultation seeks stakeholder input on how VAT rules can be adapted to better support circular business models. The focus will be on three key areas: the treatment of second-hand goods, the destruction of viable goods, and the VAT deduction rules for passenger cars used for business purposes.
The consultation is part of a broader evaluation and impact assessment process, which will run in parallel and is expected to conclude in early 2027. The findings from this process will inform a legislative proposal aimed at amending the VAT Directive to better align with the objectives of the circular and low emission economy.
The consultation is open for eight weeks and will be accessible via the Commission's 'Have your Say' portal. Stakeholders, including business federations, SMEs, trade associations, national tax authorities, academics, and the general public, are encouraged to participate and share their views.
This initiative is a crucial step towards creating a more coherent VAT framework that supports the circular economy and contributes to the EU's environmental sustainability objectives.
Businesses, tax experts & sustainability advocates – share your views by 4 November 2026.
They asked for a Circular Economy Act that goes beyond waste management to focus on using resources more efficiently, among other things.European Commissioner Jessica Roswall met on Monday (31 Aug) with 16 young people who helped shape the European Commission's Youth Check on the upcoming Circular Economy Act (CEA).
The meeting with the Commissioner for Environment, Water Resilience and a Competitive Circular Economy was part of the participatory process launched earlier this year to ensure that young people's views help guide the Commission's flagship initiative for Europe's circular economy.
It followed her first exchange with young participantsat the annual conference of the European Circular Economy Stakeholder Platform (ECESP) in April. Since then, a team of youth representatives has worked to develop a Youth Position Papersetting out their recommendations.
At the meeting, the group presented their main messages and discussed with Commissioner Roswall the opportunities and challenges of Europe's circular transition. They called for a Circular Economy Act that goes beyond waste management to focus on using resources more efficiently, making products easier to repair and reuse, ensuring safe, high-quality secondary materials, keeping the transition affordable and fair, investing in circular skills, and maintaining meaningful youth involvement throughout implementation.
The discussion also allowed the Commissioner to respond to the youth recommendations, reflect on the contribution of the Youth Check to the policy-making process and reaffirm the Commission's commitment to effective youth involvement.
“Young people are not only stakeholders in Europe’s circular transition; they are essential partners in shaping it. We need young people to voice their ideas and be part of the change that will make Europe’s circular economy a reality. I am happy to receive their ambitious recommendations today, which will help inform our work as we prepare the Circular Economy Act.”
Environment, Water Resilience and a Competitive Circular Economy Commissioner Jessika Roswall
"In the last few months we have seen what effective and tangible youth input can look like in policy-making. We appreciate the opportunity to openly share our recommendations with Commissioner Roswall and DG Environment to shape the Circular Economy Act. This is a significant step forward for meaningful youth participation in environmental policy. The Act will set the framework for a future that we, as young people, will feel the effect of, and we are ready to continue contributing to it with our ideas."
Representatives of Generation Climate Europe and Academics for a Circular Economy
Background
The CEA, due to be adopted before the end of 2026, aims to accelerate the transition to a more circular economy, increasing the EU’s economic security, resilience, competitiveness and decarbonisation.
It is intended to improve the business case for circularity by facilitating the cross-border movement of recycled products, materials, and waste across Europe. It will also increase the supply of high-quality recycled materials and stimulate demand for these materials in the EU.
The CEA Youth Checkcombined a targeted online consultation of young people aged 15 to 29, a dedicated youth session during the ECESP Annual Conference, and additional exchanges with youth stakeholders. It will also inform the Impact Assessment prepared for the Circular Economy Act in line with the Commission's Better Regulation Guidelines.
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