Circular Revenue Models: Guideline for Policymakers

In recent years, Copper8 has increasingly deepened its understanding of business models such as buy‑back and lease models. These types of models are being used more and more by entrepreneurs to stimulate circularity. Yet, in applying such models, we noticed a gap between theory and practice.

For this reason, over the past year we further explored the subject. Together with partners KPMG Sustainability and Kennedy Van der Laan, we engaged in conversations with Dutch pioneers including Mud Jeans, Bundles, Desko, Gispen, Interface, Signify, and Auping. The aim of our research is to better understand where existing accounting, fiscal, and financial practices ‘conflict’ with circular business models.

The second publication in this series is a guide for policymakers. In this publication, we take a deeper look at the following issues:

• Depreciation and maximum depreciation periods for leasing models
• Double VAT on secondary raw materials
• VAT on hire‑purchase models
• Traditional risk assessments by investors

Earlier this quarter, the first publication in this series was released, in which we provided guidance for entrepreneurs looking to work with circular business models.

Want to know more about this research? You can contact one of the following colleagues at Copper8: Cécile van Oppen, Marijn Polet, or Jeroen van Muiswinkel.