The EU Court of Justice has ruled in a Hungarian VAT case
The Krakvet Polish company offered pet food for sale on its website of a Its customers came from many different countries, including Hungary.
The company was informed by the Polish authorities that VAT would have to be paid on its sales in Poland. On the other hand, the Hungarian tax authorities assessed that Krakvet was selling at a distance, the place of performance of which was in Hungary for VAT purposes, and therefore VAT had to be paid here, and a fine was imposed on the company.
“The CJEU has stated that tax evasion does not in itself mean that someone takes advantage of differences in tax rates between different Member States.
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