Late applications: the administrative recess does not extend the deadline in special procedures

According to the judgment in Case C-248/23, Novo Nordisk, Hungarian legislation that prevents a subsequent reduction of the taxable amount in respect of mandatory payments made by pharmaceutical manufacturers to the state health insurer is contrary to the fundamental principles of EU VAT law.

Citing this EU judgment, a taxpayer applied for a substantial refund of VAT and late-payment interest under a special tax procedure, which allowed 180 days from the publication of the EU decision. As the 180-day deadline fell on a Saturday, the actual filing deadline was the following Monday, 28 April 2025. However, the taxpayer submitted its application one day later, on 29 April, and the tax authority rejected it as late.

The central question in the court proceedings was whether the central government’s administrative recess had extended the filing deadline.

The court, agreeing with the tax authority’s legal position, dismissed the taxpayer’s claim. It held that the administrative recess affects and extends only the time limits for handling proceedings already in progress. As the special procedure is initiated by the taxpayer’s application, there was no pending case before that application was submitted to which the rules on the administrative recess could have applied.

Accordingly, invoking the administrative recess cannot remedy an application filed late, and the days of the administrative recess cannot be taken into account when calculating time limits after which the right to apply is lost.