EU VAT in the Space Economy: Challenges and Normative Perspectives

Orbital facilities currently fall outside existing VAT definitions of a fixed establishment, and international law prevents establishing territorial sovereignty in space. This creates jurisdictional challenges for VAT applicability. While registration cannot confer sovereignty, it may serve as a functional nexus, allowing Member States to assert limited fiscal oversight. A registration-based approach, consistent with international law, could help integrate space activities into the EU VAT framework and prevent regulatory gaps.