European Commission Adopts Proposal for Council Decision on Hungary Input VAT Deductions on Car Leases

The European Commission (EC) Oct. 24 adopted Proposed Council Implementing Decision No. COM (2024) 491, authorizing Hungary’s request to extend its application of a deviation from Articles 26(1)(a), 168, and 168a of the VAT Directive, to continue a 50 percent limitation on the input VAT deduction rights on leases of specific passenger cars not used exclusively for business purposes. Hungary is also authorized to relieve taxable persons from having to treat the private use of such vehicles as supplies of services for consideration. The proposed decision includes measures to: 1) extend Hungary’s authorization for the deviation until Dec. 31, 2027, ...