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Why not just use a European VAT in case a product isn't bound to a specific country, although the VAT should be "donated" to the country.

VISA, Mastercard, Paypal and etc should have systems in order to donate it to the right country (they know the owner of the card). Don't have a solution yet for Bitcoin though...

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That's what we should do, but there is no common economic policy in Europe, and this is collected for the national budgets, not for the European budget. We are talking about shitload of money, half of the French State tax revenue for example.

We are also talking about shitload of fraud.

That's what MOSS is for. The issue I'm describing is how to prove location in order to complete the MOSS return.

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