The special retail tax does not discriminate foreign companies, but can harm the EU’s VAT directive

According to the Competent Advocate General of the European Court of Justice, the special tax, imposed on retail companies in Hungary does not discriminate the foreign companies, however, it can harm the EU’s VAT directive.

The retail companies with an annual sales revenue of over 500 million HUF should pay 0.1, 0.4 or 2.5 percent surtax, based on their sales revenues. The maximum rate burdens those companies, that have a more than 100 billion HUF annual revenue. According to the regulation, the revenue of a company does not calculated individually, but must be calculated for company groups. If a company has majority control in another retailer it is called a linked company. (MTI)