- The General Court held that EU VAT law does not prevent national rules requiring a new fact before reopening a period already closed by tax inspection to adjust improperly invoiced VAT.
- It found Hungary’s rule, allowing a new inspection only when previously unknown facts or circumstances emerge, is compatible with effectiveness, fiscal neutrality, and proportionality.
- This is acceptable even if there is no risk of tax revenue loss, as long as the taxpayer had a reasonable chance to seek adjustment.
- The Court noted the taxpayer could have requested adjustment before, during, or after the inspection via complaint.
- Therefore, the rules did not make EU rights excessively difficult or practically impossible to exercise.
Source: etaf.tax
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
