The Court of Justice of the European Union (CJEU) today issued a judgment concluding that the “special taxes” imposed in Hungary on the turnover of telecommunications operators and undertakings in the retail trade sector are compatible with EU law—specifically, the Hungarian special taxes were found to be compatible with the principle of freedom of establishment and the EC directive on value added tax (VAT) (Directive 2006/112).
According to a related CJEU release [PDF 251 KB]:
The cases are: Vodafone Magyarország Mobil Távközlési Zrt. (C-75/18) and Tesco-Global Áruházak Zrt. v Nemzeti Adó- és Vámhivatal Fellebbviteli Igazgatósága (C-323/18) (3 March 2020)
The CJEU judgment provides an interpretation of EU law; the judgment does not decide the dispute. Rather, it is now for the Hungarian court to dispose of the case in accordance with the CJEU judgment.
Read a March 2020 report prepared by KPMG’s EU Tax Centre
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