European Court Rules Hungary Retail Tax Discriminatory

  • 5 Feb 2014 3:00 AM
European Court Rules Hungary Retail Tax Discriminatory
The European Court of Justice on Wednesday ruled that Hungary’s sectoral tax on retailers is discriminatory, putting companies with owners in other European Union states at a disadvantage.

The ruling came in a case filed by a unit of sporting goods retailer Hervis in Székesfehérvár, in central Hungary, which argued companies must pay the tax based on consolidated turnover, which raises the rate for big, generally foreign-owned corporate groups.

Hungarian retailers with annual revenue over 500 million forints are required to pay the sectoral tax, which is calculated as a proportion of revenue: either 0.1%, 0.4% or 2.5%, depending on turnover.

Source www.hungarymatters.hu

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