On the basis of the amendment it is clear that after the many unanswered questions surrounding the launch of the EKAER system, only the EKAER reporting obligation, the relating obligation of providing collateral and the control and sanction rules relating to the EKAER system will be regulated in the law. This means that all other, more specific rules, a part of which are currently included in the Act on the Rules of Taxation, will be taken out of this act and regulated in a decree of the Ministry for National Economy.
The reasoning claims that this will allow a “more flexible” regulation of the EKAER system as the specific rules relating to the operation of the system will be included in an “easy-to-modify” ministry decree.
It is, of course, a question how this so-called flexibility will ensure a calculable, easy-to-follow regulation and legal certainty.
New information included in the amendment proposal we have to point out:
Hazard collateral will have to be provided first from 11 March 2015.
This amendment relates to the fact that the simplest form of being released from the obligation of providing collateral is to be included in the database of taxpayers with no public debt. We have explained the relating rules and conditions in detail in an earlier post.
The Hungarian Tax and Customs Authority (NAV) enters the taxpayer in the database of taxpayers with no public debt on the 10th of the month following the month in which the relevant request is filed, which means that, if the amendment is accepted, taxpayers will be able to request their listing in the database of taxpayers with no public debt in February.
This suggests that the group of products concerned by the hazard collateral may be extended!
Until 28 February 2015, the current rules will apply to reporting in the EKAER system.
This means that the reporting obligation still applies although no actual sanctions will relate to non-reporting.
From 1 March 2015, however, the new, currently unknown regulation will apply.
We are waiting in patience for the details of fulfilling the EKAER reporting obligation to which sanctions will relate in just two weeks. It is for certain though that the new regulation of decree level will not contain changes, which will demand an extension of the current test period.