Sustainability, Second-hand trade | One of Norway’s least sustainable calculations?

(Bergensavisen): Consumers must buy used. Norway is far behind the sustainability goals. A common thread and a clear message throughout the government’s circular economy action plan, which was launched last week.

I am therefore disappointed by what was not part of the action plan: VAT on used goods.

Businesses within has struggled with both legal and financial challenges for a long time. Fretex, Fæbrik, and other physical used concepts are desperately trying to get the message out:

Second-hand trade is expensive for both consumers and businesses, because we pay VAT on goods on which VAT has already been paid.

32,643 people bought used Loppeliten in my shop in 2023. In other words: The willingness to buy is there. But why is it still so hard to get it going?

In addition to other taxes and fees that go with running a business, we pay 25 percent VAT on our 19 percent commission.

This is VAT on goods on which the consumer has already paid VAT.

At Loppeliten we see the same garment being delivered several times. Here you potentially pay more in VAT than the garment was originally worth.

Isn’t that klin hakka spikke wrong?

State Secretary Erlend Grimstad (Sp) told NRK that “similar attempts from other countries show that cuts in value added tax were not a suitable means of influencing demand. Instead of giving lower prices to customers, the cuts led to increased profits for the companies”.

I would like to give him a quick review of our budgets to show what kind of margins second-hand dealers work with.

Thrift stores don’t work with a typical –calculus. Consumers’ willingness to buy used does not follow either .

It is an art to be able to run a second-hand trade with the prerequisites we have.

Norway does not keep up with the changes.

In 2023, we increased from 15 per cent to 19 per cent, because it did not circulate due to the VAT. This increased efforts for our customers.

Every time the VAT bill comes, it feels like a robbery both against the business, the consumer and the environment.

Professor at NHH and member of the Tax Committee, Jarle Møen, stated in a debate in August last year that “VAT exemption is not a sure-fire tool for solving environmental problems, but the exemption is a fairly sure-fire contribution to promoting circular services”.

We do not solve all the environmental and climate problems with VAT exemptions for second-hand trade, but it is the sum of all measures that produce the big effects.

Exemption from VAT on second-hand trade will promote the industry and stimulate more second-hand trade with obvious environmental and climate benefits.

Do the politicians want consumers to shop more used? My clear appeal is: Start with the actors who make this possible.