# C_2011298EN.01000802.xml

| 8.10.2011 | EN | Official Journal of the European Union | C 298/8 |
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Judgment of the Court (Third Chamber) of 28 July 2011 — European Commission v Republic of Hungary

(Case C-274/10)( 1 )

(Failure of a Member State to fulfil obligations - Taxation - VAT - Directive 2006/112/EC - Right to deduct - Procedures for exercise - Article 183 - National legislation allowing the refund of VAT excess only if it exceeds the amount of input tax corresponding to transactions not yet paid for)

2011/C 298/14

Language of the case: Hungarian

Parties

Applicant: European Commission (represented by: D. Triantafyllou, B. Simon, and by K. Talabér-Ritz, Agents)

Defendant: Republic of Hungary (represented by: M. Fehér, K. Szíjjártó, G. Koós, Agents, assisted by K. Magony, szakértő)

Re:

Failure of a State to fulfil obligations — Infringement of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) — National legislation allowing the refund of VAT excess only if it exceeds the amount of tax corresponding to transactions not yet paid for — Breach of the principle of tax neutrality

Operative part of the judgment

| 1. | The Republic of Hungary,
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by requiring taxable persons whose tax declaration for a given tax period records an ‘excess’ within the meaning of Article 183 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to carry forward that excess or a part of it to the following tax year where the taxable person has not paid the supplier the full amount for the purchase in question, and —
because, as a result of that requirement, certain taxable persons whose tax declarations regularly record such an ‘excess’ may be required more than once to carry forward the excess to the following tax year, has failed to fulfil its obligations under that directive. | — | by requiring taxable persons whose tax declaration for a given tax period records an ‘excess’ within the meaning of Article 183 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to carry forward that excess or a part of it to the following tax year where the taxable person has not paid the supplier the full amount for the purchase in question, and | — | because, as a result of that requirement, certain taxable persons whose tax declarations regularly record such an ‘excess’ may be required more than once to carry forward the excess to the following tax year, |
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| — | by requiring taxable persons whose tax declaration for a given tax period records an ‘excess’ within the meaning of Article 183 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to carry forward that excess or a part of it to the following tax year where the taxable person has not paid the supplier the full amount for the purchase in question, and | | | | |
| — | because, as a result of that requirement, certain taxable persons whose tax declarations regularly record such an ‘excess’ may be required more than once to carry forward the excess to the following tax year, | | | | |

| 2. | Orders the Republic of Hungary to pay the costs. |
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( 1 )  OJ C 221, 14.8.2010.

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