Summary 164 posts

Large cash amounts are to be declared when travelling

It is not forbidden to take your savings with you when travelling, however, if you leave (or enter) the territory of the EU carrying cash or cash equivalents (securities, bonds, shares etc.) worth more than EUR 10 000, you are required to file a written declaration with the Customs Authority.

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Distant sales: the tax perspectives of e-commerce

In an everyday sense, e-commerce is an umbrella term: if any of ordering, payment, product delivery or the use of services takes place online, we are talking about e-commerce. From a tax perspective, however, it is important to what extent the transactions contain web-based solutions. Distant sales should be differentiated from other activities commonly referred to as e-commerce in respect of invoicing and the VAT treatment of the transactions.

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Audit of tax registrations: there will be no witch-hunt

However, despite these reliefs, the Hungarian Tax and Customs Authority (NAV) may audit these taxpayers more frequently. Both the audit practice of the tax authority and the communication relating to the drafts of next year’s tax laws suggest enhanced audits of these enterprises in respect of the records prescribed by the Hungarian Act on Accounting.

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EU Court: VAT also deductible based on an invoice issued to another person’s name

One should always pay attention to the decisions of the EU Court of Justice. Recently, for instance, the European Court of Justice made a decision in two joined Hungarian cases providing a clearly defined framework for the former standpoint and practice of the Hungarian tax authority in respect of the exercising of the right of VAT deduction. The court in Luxembourg also made decisions in other disputes, which elevate the partnership between taxpayers and tax authorities to a higher professional level – provided, of course, that the tax authority is also open, prepared and willing to act as a partner.

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