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EU to review Hungarian VAT questions on zero rated exports

  • VAT
  • 10 May 2013 | Richard Asquith

EU to review Hungarian VAT questions on zero rated exports

The European Court of Justice (ECJ), the highest court of appeal on EU legal and tax affairs, is to review a number of zero-rated VAT export issues raised by the Hungarian VAT authorities.

In particular, the Hungarians are seeking for clarification of the time limit after an agreed sale for the export of goods outside of the EU (from Hungary) in order to qualify for zero-rated VAT.  It is also looking for guidance on when it may alter the rules of the EU VAT Directive in the interest of preventing potential VAT fraud or under collections.

This is a key issue for the EU VAT compliance system which faces multi-billions of VAT fraud where businesses purport to export goods to gain a zero VAT rate, but actually sell the products domestically – which would trigger a standard VAT rate charge.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.