Analysis: “Judgment of the Court of Justice, Google Ireland (C-482/18)” by Fernando Pastor-Merchante
This case concerns a Hungarian tax on advertising (Google Ireland Limited v Nemzeti Adó- és Vámhivatal Kiemelt Adó- és Vámigazgatósága, C-482/18). The object of the tax is the turnover generated by the broadcasting or publication of advertisements in Hungary. Newspapers and traditional media outlets are subject to the tax, but so are digital advertising companies, insofar as they publish advertisements in Hungarian or on webpages written in that language.
The problem of course is that digital companies such as Google normally operate from abroad. So, in order to prevent tax avoidance, the Hungarian legislator obliged them to register with the National Tax Authority. Failure to comply with that obligation would trigger a system of