Based on ECJ case, Hungarian taxpayers may have an opportunity to reclaim value added tax (VAT) in case of bad debts.
In its judgement Enzo di Maura, C-246/16, the European Court of Justice (ECJ) established that Member States are not allowed to exclude the opportunity of reducing value added tax if a customer fails to pay an invoice. This means that according to the ECJ's decision, VAT can be claimed back if a buyer did not settle an invoice. The current Hungarian legislation does not contain provisions on such reduction of the value added tax base in case of bad debts. As this seems to infringe the VAT Directive, taxpayers may consider reviewing the opportunities to reclaim tax.