Basics of using the "cégkapu" portal
Many confuse electronic contact keeping with the tax authority with the use of the "cégkapu" portal.
- The obligation of keeping contact electronically already applies generally from 2018 to all non-private person taxpayers and all tax matters including the ones commenced after 1 January and the ones already in progress at that time. In the case of the tax matters for which the tax authority prescribed the use of a specific form, the given form must be used for the purpose of electronic communication through AbevJava. For the cases where no specific form is prescribed, companies have to use e-Papír. By default, the data form ELLUGY is used by taxpayers for the purpose of communication with HU TA in audit procedures with which data of up to 500 MB can be forwarded.
- The vast majority of companies operating in Hungary are also aware that from 1 January 2018, the "cégkapu" portal has to be used as the exclusive official communication channel for electronic contact keeping with various authorities in the case of business associations (with the exception of communication with the tax authority). A transitional provision allows companies to use the "ügyfélkapu" account of the natural person representative of the organization until 31 December 2018 for the purpose of official electronic communication with the tax authority in the name of the business association. Accordingly, the use of the "cégkapu" portal was only an option, not an obligation in 2018 in respect of the tax authority.
According to the records of the tax authority, the use of the "cégkapu" portal concerns some 600 thousand taxpayers. Most of the business associations concerned did fulfill their obligation at least in respect of registering at "cégkapu". Of course, there are exceptions in this regard also (about 100 thousand entities in September). Firstly, we would like to prompt these entities to register with "cégkapu" because if they do not do so, they can expect the relevant tax authority to contact them using its records. After calling the taxpayer to fulfill its obligation, the tax authority may lodge a judicial review proceeding against the entity failing to register with "cégkapu".
What will change in "cégkapu" tax administration from 2019?
The option will turn into an obligation! From 1 January 2019, official contact keeping/communication between the business association and the tax authority will have to take place through the "cégkapu" portal in tax matters also in both directions. What does this mean?
First, as business associations will have to communicate with the tax authority through "cégkapu" in the future, the "ügyfélkapu" account / KÜNY repository of the entity's private person legal representative will be replaced by the "cégkapu" account of the entity.
This may even bring some relief for the entities concerned as, in the case of using their own "cégkapu" account, the EGYKE (permanent authorization) data form does not have to be filled out and filed necessarily. According to the CÉGKAPU ASSUMPTION, any document or declaration submitted to HU TA through the entity's "cégkapu" portal shall qualify as a legal declaration made in the taxpayer's name.
"This also means that if someone opens a document placed on the "cégkapu" account, this person will be regarded as authorized to receive documents in the company's name! For this reason, it is very important that the setting of "cégkapu" use is the obligation and also the liability of the business associations and special attention has to be paid to the granting of rights and labeling in this regard."
What to do regarding "cégkapu" if the company also has a permanent proxy
This is when it gets complicated. What happens if the business association also has a permanent proxy? The permanent proxy may even be a private entrepreneur not obliged to use "cégkapu" (e.g. an accountant) or a business association having the obligation to use "cégkapu" (e.g. a law firm, a company licensed to provide tax consulting). Who is entitled to submit and receive documents?
In this case, communication with the tax authority may take place not only through the "cégkapu" account of the company but also through the KÜNY repository of the private entrepreneur or through the "cégkapu" account of the representative company. The question is, which direction HU TA will use for communication.
Based on effective legal regulations, in such cases by default documents have to be forwarded to the authorized representative (the KÜNY repository of the private entrepreneur, "cégkapu" account of the representative company). However, the act also gives the tax authority the right to send documents to the taxpayer also. It will, therefore, be up to the tax authority who will receive the documents: only the permanent proxy or the company concerned also.
"The tax authority's decision in this regard will also affect the delivery assumption and the relating legal consequences as it may not be trackable clearly from the taxpayer's perspective who opened documents and when. This is particularly true for larger taxpayers applying computer interfaces for this purpose in the case of which delivery will already be assumed when a document is opened on the computer interface!"
Having regard to the fact that only one month remains until the introduction of the compulsory use of "cégkapu" for communication with the tax authority, it is justified that companies expect the tax authority to communicate the rules it intends to apply regarding delivery from 2019. Until this communication is released by HU TA, we recommend all companies to study the provisions on the use and the allocation of rights to "cégkapu".