Press Release: VAT: Commission proposes to adapt rules for gas and electricity supplies

The European Commission adopted a proposal on 9 December 2002 to amend the rules on the place of taxation of natural gas and electricity for the purposes of Value Added Tax (VAT) so as to facilitate the functioning of the Single Market for energy. The proposal would eliminate current problems of double taxation and non-taxation and distortions of competition between traders by changing the place of taxation of natural gas in pipelines and of electricity from the place of supply to the place of consumption.

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