Earlier this year, Zoe Andrews wrote that the General Court's decision in the Polish retail tax State aid case paves the way for digital services taxes.
Yesterday, the notice of the General Court's judgment in a similar Hungarian State aid case was published in the Official Journal.
Hungary had introduced a progressive turnover tax applicable to broadcasters and publishers of advertisments. For those with a turnover below 0.5 billion Hungarian forint, the tax rate was zero.
The General Court annulled the Commission's decision that the Hungarian advertising tax was State aid on the basis that the Commission had failed to prove that the measure was selective. An English version of the General Court's judgment is available.
For the moment, this case (like the earlier Polish one) indicates that the Commission may face an uphill struggle in convincing the General Court that turnover-based digital services taxes are selective solely because of a revenue threshold.