tag: tax litigation

As in every year, the Hungarian tax administration has published its yearly summary with the most important trends and numbers regarding taxation in Hungary during 2023. In the last year it seemed that, while the tax authority was still increasing its efforts to entice the taxpayers’ voluntary compliance, fines have also soared to unprecedented heights. The statistics also show that it remains worthwhile to take the case to the courts if one finds the National Tax and Customs Administration’s decisions unlawful.

According to the decision of the Court of Justice of the European Union of 16 May 2024 (C-746/22), the Hungarian rule that does not allow foreign taxpayers in VAT refund cases to submit their documents even in the appeal procedure is contrary to EU law. We have summarised the key lessons learned from the case which was handled by our office.

According to the opinion released yesterday by the advocate general of the European Court of Justice, the Hungarian regulation that prohibits foreign taxpayers from submitting their documents in the second instance (appeal) procedures in VAT refund cases violates European law. If the final judgment will align with this opinion, it would not only simplify the process for foreign businesses to claim VAT refunds in Hungary but would also open the possibility to reclaim previous VAT payments.

The rules for shop closures are tightening, and next year, those who violate invoice or receipt obligations may not necessarily get away with just a warning. Considering that even a few weeks of closure can cause significant damage to a company's life, it is advisable for businesses to tighten their processes and supervision of their employees.

The yearbook of the Hungarian tax authority summarising the most important tax events and statistics for 2022 has been published. It shows, among other things, the number of fines imposed and the effectiveness with which the tax authority's decisions can be challenged. We have compiled the most important and informative figures from the yearbook.

This is the seventh year that we’ve been taking stock of the types of taxes in Hungary – and the multi-year trend is decidedly reassuring. The number of taxes has decreased to some extent almost every year. This year we’ve counted 51 types of tax, and at this point one might reasonably ask: is it realistic to expect even fewer taxes?

For years now, opportunities to reclaim VAT on bad debts have come up again and again. Although many had thought they had definitely missed the boat on this one, taxpayers have just been given one last chance.

For the first time, the Supreme Court ruled on the merits concerning the refund of VAT on bad debts – and the decision was in favour of taxpayers. The judgments serve as a guideline in a number of similar cases, and may even help taxpayers with refunds claimed under the rules that came into force in 2020.