Comments on ECJ C-519/22: Hungarian security scheme according to ECJ AG not EU-proof

Advocate General Kokott has concluded that the Hungarian scheme for providing security for future VAT debts in connection with unpaid tax debts by another company is against EU law. The case involves MAX7 Design Kft. being required to provide security for future own tax debts due to the involvement of its director with another company that has left a VAT debt. Despite dismissing the director, MAX7 still faces the withdrawal of its tax identification number and VAT identification number. The Advocate General highlights that the imposition of such security cannot be challenged, and legal remedies do not have a suspensive effect, leading to expiration of the payment term before obtaining legal protection.

Source Taxlive

See also:

• C-519/22 (MAX7 Design) – AG Opinion – Tax guarantee imposed on a company of which one of its executive officers was a member or executive of another legal person with an outstanding tax debt

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