European Court of Justice Issues Advocate General Opinion on Hungarian VAT Rules for IT Services – Bloomberg Tax

The European Court of Justice (ECJ) Feb. 10 issued an advocate general opinion for Case No. 596/20, clarifying the Hungarian VAT rules for cross-border information technology (IT) services. The taxpayer was a Hungarian undertaking that provided IT support services to a Portuguese undertaking. Hungary claimed that due to the relationship between the parties, the VAT place of supply should be Hungary. Portugal claimed that since the Portuguese undertaking was the recipient of services, Portugal was the place of supply for VAT purposes. Upon appeal, the advocate general found that: 1) the place of supply is determined based on the recipient …
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