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EU VAT Updates


 Bitcoin transactions ruled exempt from VAT in EU.

A snapshot of noteworthy news relating to value added tax (VAT) in the European Union.

Bitcoin exempt from VAT in EU

After lengthy study of the matter, the European Court of Justice has decided that bitcoin and other digital currency transactions should be exempt from VAT. The ruling legitimates bitcoin as a private currency similar to national (fiat) currencies. Read more.

More freedom for lower VAT rates

Beginning in 2016, European Union member states will have more flexibility to set their own reduced VAT rates for a variety of goods, including e-books. As the law currently stands, lower rates apply to printed books but not electronic books, which are classified as a service, not a good. Read more.

France to lower distance selling VAT threshold

Effective January 1, 2016, the annual distance selling threshold in France will be reduced from €100,000 to €35,000.

Small EU-based Internet retailers of taxable goods selling under the threshold are entitled to charge the VAT rate in effect in their home country and declare the VAT to their national tax authority. Once the relevant threshold is crossed, sellers must register in the countries of their consumers and apply local VAT rates. Read more.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.