We cannot seriously aim to change how our economy works without changing the underlying incentives that shape business decisions. 

That is why the EU’s public consultation on redesigning VAT to support the circular economy is so important. 

Tax and market instruments are powerful tools for shifting incentives — not by prescribing every business decision, but by making circular choices economically more viable.

If we want circular business models to scale, the economic framework around them has to make sense! 

But so do the tax rules that determine the relative economics of reuse versus replacement, donation versus destruction, and cleaner versus more polluting choices. 

The VAT redesign consultation is therefore more than a technical tax exercise. It is an opportunity to ask a fundamental question: 

See our latest industry update on this