The EU Commission finds that a Hungarian progressive tax on publishers of adverts is unlawful State aid which must be recovered (Hungarian advertisement tax)

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Identification of the Reference Tax System: The Case of a Tax on Advertising Turnover* Turnover taxes should be levied at a single rate. Introduction This is the fourth case involving turnover taxes that have been declared to be incompatible with the internal market [1]. A brief summary was published here on 13 December 2016. The reasoning of the Commission follows closely that of the other cases. However, what makes this case particularly interesting is the explanation why the whole “reference” system is selective and why the selectivity cannot be justified. In 2014 Hungary imposed a tax on advertising activities. The tax was levied on gross turnover (i.e. before deduction of costs) derived from the publication of advertisements in public media. The taxable persons were publishers

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Phedon Nicolaides, The EU Commission finds that a Hungarian progressive tax on publishers of adverts is unlawful State aid which must be recovered (Hungarian advertisement tax), 4 November 2016, e-Competitions Bulletin Tax rulings, Art. N° 89933

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