VAT must be dropped on electronic spares and repairs

The steep cost of repairing electrical items is prohibitive. In many cases, it is cheaper to buy a brand-new electronic item or appliance rather than have an old one repaired. For the UK to collectively reach net zero goals by 2035 and to achieve electronic circularity this must change.

Cutting VAT on electrical repairs presents multiple benefits – the cost of getting an item repaired is cheaper for consumers and more jobs are created in the circular economy.  

By removing VAT on spare parts and on the labour to fix the goods, repairs are more cost-effective for the consumer, something particularly pertinent during the current cost-of-living crisis. Research by Trojan Electronics shows most consumers (71%) already consider the environmental impact of their electronics when purchasing them, so making it more cost-effective to extend the working life of their existing appliances helps the public make greener choices.

James Rigg, said: “The UK has one of the highest rates of VAT in the world. At 20%, UK VAT is double that of many European countries and four times that of Canada and UAE, which have a 5% rate. What’s more, the majority (54%) of UK residents support the introduction of green VAT measures. Research from Green Alliance also suggests it could contribute up to 34,000 jobs to the circular repair economy.

“Collectively we need to continue to change attitudes to sustainability and extend the life of electronics and appliances already in existence. The UK is the second-highest producer of e-waste in the world and is on track to become the highest producer by 2024. If we’re able to extend the useful life of a handheld item by one year we would be making huge strides into improved sustainability, limiting our use of finite and virgin materials, and reducing carbon emissions.”  

Reducing VAT on electrical spares and repairs wouldn’t be a revolutionary move for a government. Austria and France have already introduced schemes to subsidise the cost of electrical repairs in recent years. The UK government has a duty to step in and support green initiatives if it is to meet its own green targets.