Hungarian company Napfény-Toll was found to have wrongly deducted VAT in a tax audit in 2011. The tax authorities demanded payment of back taxes and imposed a penalty, which was annulled and then largely confirmed in subsequent decisions on objection. Napfény-Toll appealed against the third decision, arguing that the tax authorities’ right to determine the amount of VAT to be refunded had already expired. The CJEU ruled that the limitation period for the tax authorities’ right to determine VAT is suspended for the entire duration of judicial review, regardless of how often the administrative tax procedure must be repeated.
Source BTW jurisprudentie
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