The European Court of Justice (ECJ) Oct. 24 issued a preliminary ruling on Hungarian VAT deduction rules for irrecoverable payments due to the liquidation of the recipient company. The Hungarian tax authority determined that under domestic Hungarian law a taxpayer could not retroactively seek an adjustment for VAT related to payments that became irrecoverable due to liquidation of the debtor. The taxpayer argued that by not allowing a reduction of the VAT tax base in the event of definitive default by the debtor, Hungarian VAT law is contrary to the EU VAT directive. The ECJ held that this situation didn’t constitute a case of non-payment where EU member countries may deviate from the VAT directive.
Source: bloombergtax.com
Latest Posts in "European Union"
- EU Parliament Approves CBAM Reforms: New 50-Ton Threshold, Delayed Certificate Purchases to 2027
- ViDA: Transforming EU VAT with Harmonized e-Invoicing and Real-Time Reporting
- EU Court Ruling on Arcomet: Transfer Pricing Adjustments Pose VAT Risks for Companies
- Italian Tax Authorities Remove Non-EU Companies from VIES for Failing New VAT Guarantee Requirements
- Comments on ECJ C-121/24: Non-payment of declared VAT does not constitute VAT fraud
