Summary 32 posts
As the end of the year approaches, it is a priority for every company to check the VAT handling of their issued and received invoices. But why is VAT checking so crucial, and how does modern technology contribute to easier handling of the challenges involved?
Read moreFrom January 1, 2024, the deposit return system for mandatory deposit fee products marketed domestically, the DRS, will be implemented. The mandatory deposit fee system imposes tasks on both manufacturers and distributors, and due to the introduction of the DRS, the summer tax package also amended the VAT law effective from January 1, 2024. In the following blog post, we will present the most important VAT-related effects of the new DRS system.
Read moreIn this blog, we will look at what a foreign event organiser needs to bear in mind when the event requires personal presence and takes place in Hungary. There are a number of factors to be considered in connection with a Hungarian event of a non-resident company, from the VAT registration and tax liability to the invoicing and declaration of transactions and the recovery of the VAT content of the costs incurred.
Read moreUK companies have no longer been subject to EU VAT laws since 2021; therefore their Hungarian tax liabilities are governed by different rules. How can VAT regulations be interpreted in this new situation and what have taxpayers experienced since Brexit? In our blog post below we have summarised the most important changes from a VAT perspective.
Read moreMarket expansion or typical business transactions of a company may require foreign VAT registration. Below we discuss when a company needs to apply for a tax number abroad and pay local taxes.
Read moreA number of Hungarian businesses are involved in international trade, including intra-Community supplies of goods, import of goods from third parties or supplies of services abroad. For cross-border transactions, a key aspect that should be examined is whether there is a requirement to register for VAT abroad and whether any VAT liability arises abroad. In this blog entry we present five cases where companies are required to pay VAT abroad in connection with cross-border transactions.
Read moreRecently, the so-called BNPL service, which stands for \"Buy Now, Pay Later\", has become increasingly popular. Although digitalisation and COVID-19 have accelerated the spread of this interest-free, deferred or instalment payment facility, the Hungarian Tax Authority has not yet developed a uniform practice on the correct VAT treatment of BNPL services. Please note that the VAT treatment of BNPL services can vary under Hungarian legislation, so it is important to be familiar with the rules.
Read moreMany of our clients, mainly in the manufacturing and construction industries, face tax difficulties when they supply products or services to their customers involving assembly or installation work related to greenfield investments or expansion of manufacturing capacity. The VAT treatment of these transactions may be quite complex. One main reason for this is that based on the contractual or business context various types of transactions are conducted with different VAT implications.
Read moreThe eVAT M2M system will become an increasingly common solution for VAT filing processes in the future. Although the eVAT M2M system offers many advantages for taxpayers and tax authorities, its implementation also poses challenges for both parties and expert support may be needed. If properly prepared and managed, eVAT communication will enable companies to meet their tax obligations more efficiently and easily. The Hungarian Tax Authority plans to start the test run in autumn 2023 and to go live in the first half of 2024.
Read moreIn our latest blog post on the specifics of permanent establishments, we have collected what foreign businesses should pay attention to from a tax perspective if they carry out permanent work in Hungary at fixed sites. The existence of a permanent establishment may require the establishment of a branch office or may give rise to VAT and/or corporate income tax liabilities. We will explain in detail what is meant by the so-called permanent establishment risk and what is meant by the concept of a fixed establishment for VAT purposes.
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