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European Court to discuss Hungary motorway VAT appeal

The European Court of Justice will consider on Wednesday an appeal by Hungary against a European Commission decision prohibiting Hungary from using European Union funding to cover VAT costs in a motorway construction project, the court's schedule shows.

The VAT costs were accounted in the construction of a 34km section of the M43 motorway, between Szeged and Makó (SE Hungary). Hungary is arguing in the case that the VAT costs were included because the state-owned infrastructure company could neither reclaim VAT nor include it in its bills. But the Commission said the state would ultimately receive the VAT back in the motorway fees paid by users.