European Union Gazettes ECJ Preliminary Ruling on Hungarian Input VAT Deduction Rules

The European Union Official Gazette Jan. 12 published the European Court of Justice (ECJ) preliminary ruling for Case No. T-363/25, on Hungarian input VAT deduction rules. The taxpayer, a Hungarian automotive parts trading company, purchased spare parts from German suppliers through a domestic intermediary under a cooperation agreement. The intermediary re-invoiced the supplies to the taxpayer, who deducted the VAT on those invoices. The Hungarian tax authorities denied the deduction, contending that the invoice was fictitious. Upon request for a preliminary ruling, the ECJ found that Directive 2006/112/EC on the common system of VAT must be interpreted as precluding tax ...