E-commerce VAT: new rules for the exchange of payment data have been adopted by EU

In February 2020, the Council of Economic and Financial Affairs (Ecofin) adopted new rules to facilitate detection of tax fraud in cross-border e-commerce transactions and to simplify the VAT rules for small enterprises. The new rules on the exchange of VAT payment data in e-commerce will enable the Member States to collect, in a harmonized way, the electronic data from payment service providers (such as banks).

EU Court of Justice rules against Google in Hungarian tax on advertisement case

In its judgement of 2 March 2020, the Court of Justice of the European Union (CJEU) established that Member States are free to impose registration obligation for foreign suppliers and levy penalties on foreign entities for incompliance with the obligation, even if resident entities are exempt from that obligation. The judgement, however, also contains that the Hungarian legislation is disproportionate and as such, it is incompatible with the EU rules.

Expected changes on local business tax

The National Competitiveness Council held a meeting on 4 February 2020 about the possible future changes of the local business tax. Mihály Varga, Minister of Finance outlined that there is a strong need for simplification and reduction of local business tax, which has not changed significantly since its introduction in the early 1990’s.