Mr Matolcsy said in response to a written question by a Member of Parliament. The reply has been published on the website of Parliament. The minister confirmed that reverse VAT is an appropriate tool for fighting VAT fraud. Reverse taxation means that the VAT is not charged by the seller but will be paid to the central budget by the buyer. The minister notes in the letter that the extension of the range of products falling under reverse taxation over certain farming products can only be introduced for a temporary period and requires authorisation from the European Council, which means that Hungary must apply for a derogation to the European Commission. Prime Minister Viktor Orban announced in Parliament on September 12 as part of the national protection plan that Hungary wishes to introduce reverse taxation in the farm sector and has began consultations with the European Commission on the matter.