Hungary seen in infringement of EU VAT rules

The European Commission decided today to send a letter of formal notice to Hungary for infringing EU VAT rules. Under the Electronic Trade and Transport Control System (EKÁER) system, companies are obliged to provide the Hungarian tax authorities with detailed information for VAT purposes on certain business-owned transport that use public roads.

This requirement infringes the VAT Directive as it primarily affects cross-border EU transactions and introduces administrative formalities connected with the crossing of borders.

If Hungary does not act within the next two months, the Commission may send a reasoned opinion to the Hungarian authorities.

Problems on the telecom front too

The EU executive has also called on seven member states, including Hungary, to carry out analysis of the relevant telecom markets on time.

National regulatory authorities must carry out analysis of telecom markets susceptible to EU Regulation every three years under the current legal framework
http://eur-lex.europa.eu/legal-content/en/ALL/?ur i=CELEX%3A32002L0021
and notify the corresponding measure to the European Commission.

“Belgium, Hungary, Ireland, Poland, Romania, Slovenia and Spain have not informed the Commission about their analysis. Therefore, the Commission, by sending a letter of formal notice, decided today to request those seven countries to carry out their analysis without delay of relevant telecom markets and inform the Commission within the timeframe set by the EU law."

For all seven cases, the delays are significantly over five years.

The seven Member States concerned have two months to reply.

• Tags:
• economy,
• european commission,
• transport,
• infringement