tag: EU

When is an export not an export? New VAT rules on intra-Community supplies of goods

Tamás Fehér | 18 October 2018

The rules on VAT-exempt intra-Community supplies of goods have long been a source of worry for businesses. It is not uncommon for the tax authority to deny tax exemption on such transactions on the grounds that the goods never left the country. Although a recently accepted proposal by the EU clarifies the rules, complying with them entails a great deal of bureaucracy for companies that deliver to EU markets.

Open season for VAT number shopping?

Dániel Veres | 14 August 2018

In its judgement passed a few weeks ago, the treatment of European Court of Justice (ECJ) was flexible in the interpretation of the VAT “triangular transactions”. While this decision in favour of the taxpayer creates a tax planning opportunity for businesses involved in international trade of goods, it pays off to be cautions on the other side.

Bringing VAT “back from the dead”

Tamás Fehér | 24 July 2018

Companies are faced with countless situations where, for reasons beyond their control, they are unable to collect the money owed to them, including its VAT part. In such cases the tax authority often refuses to allow the reclaim of the lost VAT even where this would not incur a loss for the budget. Based on recent judgements by the European Court of Justice (ECJ), however, the VAT should be recoverable in many cases of this kind.

Are we mischarging the VAT on leasing?

Tamás Fehér | 11 May 2018

Following the recent reinterpretation by the European Court of Justice (ECJ) of the definition of closed-end finance leasing, a new Advocate General (AG) opinion has exploded another “VAT bomb” in relation to current practice. For many years, leasing companies have divided the fees payable under finance lease contracts into a VATable and a non-VATable part, but the latest AG opinion states that the whole lease fee should be liable for VAT in its integrity. This could have serious implications for the Hungarian leasing market too, so it is worth keeping an eye on how the case progresses.

Tags:
eu, leasing, VAT

Bitcoin: not black, not white

Ákos Baráti | 22 February 2018

While more and more people all around the world are being bitten by the bitcoin bug, tax authorities are subjecting transactions executed with the cryptocurrency to ever closer scrutiny. Meanwhile, it is increasingly obvious that the world of bitcoin is starting to give shape to a new form of tax haven.

VAT on public-purpose investments: property developers can breathe a sigh of relief

Tamás Fehér | 2 October 2017

In 2009 the Supreme Court made it clear that the VAT on public-purpose investments related to property developments is deductible if it would not be possible to implement the development without such investment. Recently, however, some alarm was unexpectedly caused by the preliminary opinion of the advocate general of the European Court of Justice (ECJ) in a similar, Bulgarian case, which recommended prohibiting the tax deduction right. Although the ECJ’s judgement published in the middle of last week did not follow the advocate general’s opinion, it did make exercising the deduction right subject to some strict conditions.

End to an unjust fine?

Ádám Fischer | 3 March 2017

Under current practice the Tax and Customs Administration (NAV) fines taxpayers that are caught with a VAT shortfall even if the budget has sustained no losses. An opinion recently published by the Advocate General of the European Court of Justice could spell the end for this extremely unfair and much criticised procedure.

Tags:
EU, tax penalty, VAT

Financial investors in jeopardy

1 December 2016

A cartel case of key importance is currently awaiting a decision from the General Court of the European Union (GC). If the GC approves the decision of the European Commission, this will open the door for declaring financial investors liable, under cartel law, for the illegal practices of businesses in their portfolio companies, regardless of whether or not the investor was aware of the cartel activities.

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The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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