European Court adjudicates late fee to Hungary VAT payers

(MTI) – The Hungarian tax authority should pay late fees to Hungarian taxpayers who suffered damages due to the delays in being reimbursed for their value-added tax payments, the Luxembourg-based European Court of Justice has ruled.

After a 2011 ruling of the European Court, Hungary scrapped a stipulation which had prevented taxpayers from reclaiming the VAT for unpaid purchases, but failed to enact compensation for those payers.

In its ruling, passed last month and published on Thursday, the Court said that reclaimed tax amounts should be reimbursed within a reasonable time frame or else the tax payer is entitled to a late fee under European law.

Source: http://mtva.hu/hu/hungary-matters