The European Commission (EC) released its latest monthly infringement package, which includes several tax-related enforcement actions against Hungary and Spain. These steps are part of the Commission’s role in ensuring compliance with EU law.
Key tax decisions in the package:
Hungary – Carbon quota tax (letter of formal notice):
The Commission has issued a formal notice to Hungary for applying a carbon quota tax on entities receiving a significant free allocation of emissions allowances under the EU Emissions Trading System (ETS).
The Commission considers this practice incompatible with EU law governing the ETS framework.
Spain – Taxation of nonresident dwellings (letter of formal notice):
Spain received a formal notice for failing to align its tax rules with EU free movement principles.
Specifically, the complaint relates to nonresident taxpayers and the tax treatment of dwellings used as habitual residences, which may conflict with the Treaty on the Functioning of the European Union (TFEU) and the European Economic Area (EEA) Agreement.
Hungary – Retail tax regime (reasoned opinion):
The Commission issued a reasoned opinion to Hungary regarding its retail tax regime, which it considers inconsistent with the freedom of establishment under TFEU rules.
This step is more advanced than a formal notice and may lead to referral to the European Court of Justice if Hungary does not comply.
Next steps:
These decisions reflect the Commission’s ongoing efforts to ensure fair, non-discriminatory taxation across the EU and enforce treaty obligations among member states.
Source: europa.eu
