Brussels Rejects Request For Sugar Industry Reverse VAT By Hungary

Budapest, April 25 (MTI) – The European Commission has once again rejected a request by Hungary to introduce reverse VAT in the sugar sector, the National Economy Minister told MTI on Thursday.

The EC earlier rejected a request by Hungary to implement the introduction of reverse VAT in the sugar sector in the framework of a “Quick Reaction Mechanism”, reserved for instances that require emergency measures when member states are faced with a serious case of sudden and massive VAT fraud.

Hungary’s government introduced the practice of obliging the buyer, not the seller, of goods to pay VAT for grain with the aim of reducing tax evasion in 2012. Data from the National Tax and Customs Authority show the change has sharply reduced tax fraud.

Photo: www.felsofokon.hu

Source: http://mtva.hu/hu/hungary-matters