European Union Gazettes ECJ Judgment on Hungarian VAT Deduction Rules

The European Union Official Gazette Feb. 26 published the European Court of Justice (ECJ) judgment for Case No. C-537/22, on Hungarian VAT deduction rules. The taxpayer, a wholesale business in Hungary, acquired office supplies from a Hungarian company. The Tax Authorities found the invoices unreliable and deemed the transactions between the two companies fraudulent. The Tax Agency refused the VAT deduction on invoices, citing VAT fraud. The ECJ held that under EU Directive 2006/112/EC on the common VAT system: 1) the Tax Authority could refuse a taxpayer’s right to deduct VAT on the acquired goods due to a lack of ...