ADVERTISEMENT

No funding recovery in Hungary, EU VAT case while procedure underway

Issues

Hungary will not have to repay European Union funding in cases involving the country's application of EU support for VAT as long as the legal procedure is underway, the National Economy Ministry said on Friday, responding to a query by MTI.

The European Court of Justice on Thursday rejected appeals by Hungary against the European Commission's stand that Hungary may not use European Union funding to cover VAT costs in a motorway construction and a railway renovation project.

The VAT costs were accounted in the construction of a 34km section of the M43 motorway, between Szeged and Makó (SE Hungary), and the reconstruction of a rail line between Budapest and Boba (W Hungary). Hungary argued 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.

Hungary has two months to decide to appeal the ruling made by the court on Thursday.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.