Hungary CJEU judgment on move to lower VAT rate country | KPMG | GLOBAL

Hungary: CJEU addresses transfer to lower VAT-rate jurisdiction as tax-abusive

Lower VAT-rate jurisdiction

The Court of Justice of the European Union (CJEU) today issued a judgment concluding that the transfer of know-how enabling operation of an “erotic website” from Hungary to Madeira (Portugal), where a lower rate of value added tax (VAT) applies, is not itself an “abusive practice.”


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As noted in a CJEU release [PDF 113 KB], the transfer however could amount to an abusive practice if its objective is to conceal the fact that the site is in fact operated from Hungary.

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