Facebook image
VAT debt assumption

VAT debt assumption

VAT debt assumption is a lesser-known legal institution that ensures lawful tax optimization assisted by the tax authority. It is a possibility worth considering when high-value transactions and payment difficulties arise.

Do you have any question?
Don't hesitate to contact us!

Ottó Bulátkó

Manager, Tax services


A business transaction may take place without the actual payment of VAT, i.e. by the payment of the net consideration, provided that certain conditions are met. Our legal team will guide you through the entire debt assumption process, from consulting the tax authorities to signing the contract.

Benefits of VAT debt assumption

When debt is assumed, the obligation of the company issuing the invoice and obliged to pay VAT is fulfilled by the company receiving the invoice, using the amount that can be reclaimed as a result of the VAT deduction. The VAT debt assumption is approved by the tax authority, and it ensures the following benefits:

  • controlled finances (cash flow management);
  • resolution of payment difficulties;
  • reduction of transaction fees;
  • risk mitigation (the transaction is verified by the Hungarian Tax Authority);
  • lawful tax optimization.

Our experts will help you assess the conditions of VAT debt assumption.

Consult us for legal support!

VAT debt assumption: who should use it

Contact our experts to find out if your company features any of the following:

  • execution of one-time, high-value transactions;
  • interest in high-value investments and projects; 
  • temporary payment difficulties.

Our services

From the preparation of the agreement to the signing of a contract, you can count on us throughout the entire process of VAT debt assumption, as follows:

  • identification of transactions, screening of invoices;
  • wording of a draft debt assumption contract;
  • negotiations, coordination of transactions with the tax authority;
  • support for legal compliance reviews (participation in on-site audits of the Hungarian Tax Authority);
  • finalization of the VAT debt assumption contract;
  • forwarding of signed contracts to the tax authority.

As a result of our experience with the Hungarian Tax Authority, we are highly familiar with the conduct of tax authority processes, therefore we can use our skills and effective communication when representing you in the use of the legal institution of VAT debt assumption.

Consult us for legal support!

    If you have any question, please don't hesitate to contact our experts!

    Contact our expert directly or send us an offer request!

    Our professionals regularly publish specialist material