News, analyses, publications
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 [...]
C-164/24 – "Cityland" EOOD According to the Court of Justice of the European Union (CJEU), the temporary failure to fulfil VAT payment obligations cannot, in itself, justify the cancellation of a VAT number. In the underlying case, the Bulgarian tax authority cancelled the VAT number of a [...]
C-213/24 – Grzera The preparation of land for parcelling, utility installation, and sale constitutes a “preparatory activity” for VAT purposes, even where the landowners entrust such tasks to a third party. Spouses may jointly act as a taxable person in the form of a “civil law partnership.” The [...]
The PKF worldwide newsletter features articles from 22 countries and is essential reading for anyone interested in tax and the global business environment. Hungary is also included in this issue, with a focus on important recent tax developments. At the end of the article, you’ll also find expert [...]
C‑640/23. – Greentech Incorrectly charged and paid VAT relating to a time-barred period is not deductible. However, the taxable person cannot be precluded from submitting a VAT refund request to the tax authority. The Romanian company Greenfiber (the transferor) transferred assets to the Romanian company Greentech (the transferee) [...]
The inspection of large taxpayers and activities deemed risky by the tax authority continues to play a key role in this year's audit plan, as outlined in the NAV's audit plan published on March 11, 2025. The significance of automated audits – which examine discrepancies between invoice and [...]
On our website, we regularly publish brief summaries of recent rulings of the Court of Justice of the European Union (CJEU), primarily concerning VAT and procedural matters. In this article, we will be touching on the legal effects of European court rulings and why businesses should closely monitor [...]