Under the earlier regulation as of 30 June 2022 direct taxation should have been applied to the sales listed above in the title.

In accordance with the previously effective provisions of the Act CXXVII of 2007 on Value Added Tax (VAT Act), reverse taxation had to be applied in the following cases:

  • the transfer of a marketable property right (emission unit) entitling to the emission of greenhouse gases,
  • the sale of agricultural products listed in the VAT Act, and
  •  the sale of steel products listed in the VAT Act.

A source of European Union law (DIRECTIVE 2006/112/EC of the COUNCIL of November 28, 2006 on the common value added tax system) provided the member states with the possibility of applying reverse taxation for this product range only until 30 June 2022.

However, in the meantime, COUNCIL DIRECTIVE (EU) 2022/890 was adopted (June 3, 2022) on the amendment of Directive 2006/112/EC, based on which the previously effective rules of the VAT Act requiring reverse taxation will remain in force after 30 June 2022, so reverse taxation should be applied to the above product categories.

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