Results of ECOFIN Meeting - Taxation

12 February 2002

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The Council gave its political agreement to the Commission's June 2000 proposals for a Directive and a Regulation on the application of VAT to digital products. The new rules will ensure that EU suppliers will no longer be obliged to levy VAT when selling these products on markets outside the EU. Current VAT rules, drawn up before e-commerce existed, subject electronically delivered services originating within the EU to VAT irrespective of the place of consumption, whilst those from outside the EU are not subject to VAT even when delivered to consumers within the EU.

The Council also adopted formally a Directive revising the rates and structure of excise duties on manufactured tobacco.

See full Council meeting note (provisional version)

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