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Tesco and Vodafone Lose EU Court Battle Against Hungarian Sector-Specific Taxes

05 March 2020

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Hungary-European Union

The Court of Justice of the European Union on 3 March 2020 issued its judgments in the cases brought before it by UK retailer Tesco and Dutch headquartered Vodafone against the Hungarian sector-based taxes on retailers and telecom operators. Following the 2008 financial crisis, Hungary introduced specific taxes on specified economic sectors, including retailers and telecom operators. In both of the latter cases, the levy consisted of a tax on turnover at very steeply progressive rates. Because most large retailers and telecom operators in the country were affiliates of foreign (EU) parents, the strong progressivity of the turnover tax resulted...