The Hungarian Tax Authority (NAV) recently published an official opinion, which elaborates on the VAT consequences related to hotel room cancellations and guest no-shows, thereby providing guidance to accommodation providers and stakeholders in the hotel industry. Anyone who frequently books accommodation at hotels or guesthouses may have experienced [...]

C‑726/23. – S. C. Arcomet Towercranes SRL A subsequent transfer pricing adjustment invoiced by the service provider also constitutes consideration subject to VAT, provided that the contracting parties have agreed on a settlement based on the arm’s length price. The tax authority may examine the actual underlying supply in relation [...]

The Hungarian Tax Authority (HTA) will tighten the validation rules applied in the Online Invoice system starting from 15 September 2025, in order to further improve the quality of invoice data reporting and to achieve greater consistency in data submissions.  The most significant change is that 15 validation [...]

C-433/24 – Galerie Karsten Greve The application of the special scheme for works of art is not precluded where the dealer acquires the artwork not directly from the artist, but from a legal person established by the artist. Galerie Karsten Greve (GKG) operates an art gallery. It applies [...]

The case of the Austrian company P GmbH has once again come before the CJEU: the Court has provided further guidance on the issue of the improperly charged higher VAT rate. P GmbH operates an indoor playground in Austria, where the majority—but not all—of its customers make use [...]

C‑427/23. – Határ Diszkont Kft. In relation to VAT refunds available to foreign passengers, the CJEU held that the administrative services performed by a retailer for consideration cannot be regarded as either an ancillary service, a service directly connected with an export, or an exempt financial service. The [...]

C‑808/23. – Högkullen AB Where the taxable amount regarding the management services provided by the parent company must be determined by reference to the arm’s length principle, the distinct components of such services must be examined separately to determine the fair market price. Högkullen AB provided “management” services [...]

The act on the 2025 summer tax amendments (Act LIV of 2025) was promulgated in the 19 June 2025 issue of the Hungarian Official Gazette. In addition to making several fine-tuning amendments to existing tax mechanisms, the legislature has formally integrated windfall profit taxes and the latest tax [...]

C‑125/24. – Palmstråle Unless the importer is acting with fraudulent intent, a mere breach of customs formalities cannot, in itself, justify the denial of import VAT exemption for the re-importation of previously exported goods. The plaintiff in this case temporarily exported racehorses from Sweden to Norway for competition [...]

C-501/24 – Klinka Geo Trans Földmunkavégző Ipari, Kereskedelmi és Szolgáltató Kft. The Court of Justice of the European Union (CJEU) has confirmed that if the transaction specified on the invoice did not actually occur, the deduction of VAT based on that invoice may be denied without the tax [...]

As of January 1, 2024, the double tax treaty between Hungary and the United States (hereinafter: the Treaty) has ceased to be in force. Consequently, both countries now determine tax liabilities solely based on their domestic legislation, which can result in double taxation of the same income, without [...]

C‑228/24. – „Nordcurrent group” UAB  The limits on denial of tax benefits related to cross-border dividend payments clarified by a recent CJEU ruling. The plaintiff in the case is a Lithuanian company that is part of a corporate group engaged in the development and distribution of video game [...]