Business

Back Market leads calls to scrap VAT on refurbished electronics in the UK

Back Market, a leading marketplace for refurbished technology, has taken centre stage in a renewed campaign urging the UK government to eliminate VAT on refurbished and repaired electronics. In an open letter to the environment secretary, Steve Reed, Back Market, alongside 24 other organisations and businesses, argues that scrapping VAT would lower the cost of refurbished products, making them more attractive and accessible to consumers. The coalition believes that such a move would not only help households save money but also play a vital role in reducing e-waste and supporting the transition to a circular economy.

According to Katy Medlock, UK general manager at Back Market, the price remains the biggest influence on whether consumers opt for refurbished devices over new ones. She emphasises that, if the aim is to make refurbishment mainstream and cut down on electronic waste, making these products more affordable is crucial. Removing VAT, she argues, would directly benefit consumers, encouraging more people to consider sustainable options and boosting demand for repaired goods. Medlock’s position is echoed by other signatories, who highlight the need for policy to catch up with public and business demand for cost-effective, sustainable technology.

Currently, refurbished electronics in the UK are subject to the same VAT rate as brand-new devices, a situation campaigners believe is counterproductive. The letter, backed by well-known brands such as Currys, Suez, and the Restart Project, points out that making repair and reuse easier and less costly would not only help the environment but also support job creation, with estimates suggesting that growth in the repair sector could generate up to 80,000 jobs by 2040. While the Treasury has acknowledged its commitment to reducing waste through its circular economy taskforce, it has so far not commented on the likelihood of future tax changes. In the meantime, Back Market and its coalition of partners continue to press for ambitious measures to make sustainable technology the norm for all UK households.

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