The ECJ issued a preliminary ruling (Case No. C-537/22) regarding Hungarian VAT deduction rules. The case involved a Hungarian wholesale business acquiring office supplies from a domestic company, with the Tax Authorities alleging fraudulent transactions. The Tax Agency refused the VAT deduction, citing VAT fraud. The ruling clarified that the Tax Authority can deny VAT deduction if there is a lack of diligence, must prove elements of VAT fraud, and taxpayers must exercise due care to avoid indirect participation in VAT fraud.
Source GlobalVATcompliance
See also
- ECJ C-537/22 (Global Ink Trade) – Judgment – Deduction of VAT in case of a missing additional evidence/fictitious transactions
- Summary of ECJ C-537/22 (Global Ink Trade): VAT Deduction, Primacy of EU Law and Taxpayer Obligations
- ECJ C-537/22 confirms that the principle of the primacy of EU law establishes that EU law takes precedence over the laws of Member States
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
Click on the logo to visit the website
Latest Posts in "European Union"
- General Court T-689/24 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – VAT deductible for the right period if you get the invoice before filing
- General Court T-643/24 (Credidam) – Judgment – Unlicensed use of protected works is fully taxable with VAT on all remuneration
- ECON Urges Reform of EU Financial Services VAT Exemption and Clarification of Emerging Services
- AG Kokott Clarifies VAT Impact of Transfer Pricing Adjustments in Stellantis Portugal Case
- VAT on Asset Transfers Between Spouses’ Separate Businesses: Recent Legal Developments and Tax Implications
