A few weeks ago, the Assemblée Nationale approved a measure to reduce VAT on the repair of items such as footwear, leather goods, textiles, and bicycles. The aim is to promote the circular economy in France. This decision will lower the VAT rate applied to these repair activities from 20% to 5.5%, representing a major boost for the repair sector.
The need and interest in enhancing sustainability in the footwear, textile, and furniture sectors form the foundation of the REMAIN project. Led by INESCOP, the Footwear Technology Center, this initiative involves the Universities of Zaragoza, Alicante, Coimbra, and Clermont Auvergne INP; the Spanish Footwear Industries Federation (FICE); SMA-RTY; the Spanish company Automatica Control Numerical SL; AIDA CCI; and the social association Proyecto Lázaro as a collaborating entity.
Through the REMAIN project, the goal is to promote sustainability in the footwear, textile, and furniture industries, aligning closely with the recent measure approved by the French Parliament. This political decision provides explicit support for artisans whose work focuses on extending the lifespan of products as an effective strategy to combat waste.
Regarding the French Parliament’s move, the Fédération Française de la Cordonnerie Multiservice (FFCM) emphasized that the measure will help strengthen the circular economy and safeguard the activity of local artisans. This step bolsters France’s circular economy strategy by encouraging the repair of specific products through tax incentives.
Commitment to the Circular Economy
The footwear and textile industries produce everyday products that typically have short lifecycles. For this reason, initiatives like REMAIN aim to introduce remanufacturing as part of companies’ business models, yielding a dual benefit: reducing waste generation and minimizing environmental impact.
The reduction in VAT on repairing footwear, leather goods, textiles, and bicycles serves as an incentive for consumers to opt for repair rather than disposal, fostering the establishment of a more sustainable economic model in France.