ECJ Case No. C-596/20 (DuoDecad Kft.): VAT is levied from the party that agreed to pay for services regardless of its relationship with a third party

The ECJ published an advocate general opinion in Case No. 596/20 on February 10, clarifying Hungarian VAT determination rules for cross-border IT services. Both the Hungarian and Portuguese tax authorities claim VAT is payable on IT support services in their respective member states. The Hungarian tax authorities seems to imply an intention of abuse. Unusual, as the service user, whether in Hungary or Portugal, would seem to be entitled to VAT recovery. 

  Source: GVC