On 11 March 2024 FEBA published a Joint Statement on VAT relief for donations together with EuroCommerce, Federation of the European Sporting Goods Industry, Toy Industries of Europe. In many EU countries, companies are facing incremental VAT costs when donating surplus food and non-food products to charities and other charitable causes. Even though the EU VAT Directive gives Member States the possibility to define VAT relief conditions for donations to charitable organisations, only a handful of countries make use of this VAT neutralisation option. Removing VAT on charitable donations could help manage surplus inventory sustainably and Member States can create taxation laws that are in line with the Green Deal’s goals. 

We ask the EU Commission to play a leading role in encouraging Member States to leverage VAT neutralisation options provided by the EU VAT Directive, allowing unsold food and non–food products to be supplied for free to recognised donation organisations, without triggering an incremental VAT cost for the donor.