VATupdate

ECJ: VAT on advertising services

A recent European Court of Justice ruling affecting Hungary has answered an important question regarding VAT on advertising services. The judgment in Case C-334/20 was published on 28 November 2021. Essentially, the issue was whether the tax authority can refuse a deduction of VAT on advertising services if they deem that the services are overpriced or that no increase in sales revenues can be shown as a result of using the services.

Source WTS

See also ECJ C-334/20 (Amper Metal Kft.) – Judgment – Excessive advertising costs allow for Input VAT deduction

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