Invitel to appeal fine levied related to January VAT reduction

Analysis

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Hungarian telco firm Invitel said late yesterday it had passed on a January reduction of the internet VAT rate to clients; it disagrees with a fine recently levied by the National Media and Infocommunications Authority (NMHH) on the matter and will appeal it at court, Hungarian news agency MTI reported.

NMHH said earlier yesterday it had fined Invitel HUF 10 million because the company unilaterally raised fees of its phone, cable television IPTV and internet contracts with no time limit after the VAT on internet services was lowered from the standard 27% to 18% at the start of 2017. NMHH also said Invitel should cease the practice.

The telecom authority made the decision as part of a recent general review it carried out of how service providers executed the internet VAT reduction.

Invitel was one of three service providers where NMHH said it found irregularities, and the only case where it levied a fine. In a May resolution the authority demanded Telenor inform its clients in full of the related changes. It also found irregularities related to the VAT reduction at Jurop Telekom, but halted the procedure because the company was wound up.

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