What is current situation in the European Union as regards VAT taxation of transfers of CO2 allowances? The answer is  complex.

It should be noted, that four different approaches are being taken across European Union in that matter now.

In the most of EU countries nothing have changed up to now, in some (like United Kingdom, France and Netherlands) in June and July this year were introduced (unilaterally) new measures (different in each of them) and the European Commission also proposes something new – temporary measure in the VAT Directive.

There is of course also a differentiation in VAT treatment of domestic and cross-border transactions.