Hungary’s parliament passed a bill under which companies can submit VAT refund claims based on an European Court of Justice ruling before October 20, or obtain a refund later in their VAT returns, late on Monday.
The new law repeals earlier stipulations which prevented companies from reclaiming VAT collected on unpaid transactions.
The European court ruled late in July that Hungary’s VAT regulations were incompatible with EU law, and the state must refund payments amounting to 250 billion forints (EUR 860m).
The motion, tendered by Economy Minister Gyorgy Matolcsy, was adopted with a unanimous support of 301 deputies.
The tax authority will refund the amounts within 30 days of receiving a reclaim, or within 45 days if the amount exceeds one million forints.