VAT on Voluntary Carbon Credits

The author in this article examines specific legal and practical issues concerning the VAT treatment of the purchase and sale of voluntary carbon credits (VCCs), situating the analysis within the evolving EU VAT framework and its interpretative uncertainties. In this respect, the analysis focuses on the challenges arising from the rapid development of the VCC market and the absence of harmonized rules and positions. Special attention is given to the question of whether existing VAT rules are sufficiently adaptable to accommodate these new realities, as well as to the potential need for legislative or interpretative clarification at the EU level.