Taxpayer rating
From 1 January 2016, NAV (HU TA) introduced a new rating category for group taxpayers and VAT-registered taxpayers listed in the trade register.
Accordingly, taxpayers may be classified under three ratings:
- General taxpayer according to the previously applicable, general rules,
- Reliable taxpayers according to rules more relaxed relative to previous rules,
- Risky taxpayers according to rules stricter than the previous rules.
Ratings are reviewed quarterly with NAV (HU TA) notifying taxpayers of the rating and the change of rating electronically. Ratings may also be inquired through the "ügyfélkapu" government internet portal.
Taxpayers are rated automatically, i.e. rating is not granted upon request unlike previously in respect of qualified taxpayers or listing in the database of taxpayers frees from public debt.
Reliable taxpayer
Hungarian Tax Authority (NAV) introduced a new rating category for group taxpayers and VAT-registered taxpayers listed in the trade register.
Accordingly, taxpayers may be classified under three ratings:
- General taxpayer according to the previously applicable, general rules,
- Reliable taxpayers according to rules more relaxed relative to previous rules,
- Risky taxpayers according to rules stricter than previous rules.
Benefits coming with a reliable taxpayer status:
- In the case of reliable taxpayers, the cap on the penalty that may be imposed on the taxpayer is 50 percent of the tax and default penalty otherwise chargeable, and in the case of fixed rate penalties, the maximum penalty that may be imposed on the taxpayer is 50 percent of these fixed rates.
- Tax audits may last for a maximum of 180 days.
- Reclaimed value-added tax is disbursed by the tax authority to public limited companies within 20 days and to reliable taxpayers within 30 days.
Risky taxpayer
Hungarian Tax Authority (NAV) introduced a new rating category for group taxpayers and VAT-registered taxpayers listed in the trade register.
Accordingly, taxpayers may be classified under three ratings:
- General taxpayer according to the previously applicable, general rules,
- Reliable taxpayers according to the rules, are more relaxed relative to previous rules,
- Risky taxpayers according to rules stricter than the previous rules.
Consequences of risky taxpayer status:
- The audit deadline is 60 days longer than under general rules,
- The deadline for VAT disbursement is 75 days,
- The late payment fee charged to risky taxpayers in audit procedures is one 365th of 150 percent of the late payment fee calculated under general rules,
The threshold and cap on tax and default penalties imposed on risky taxpayers is higher than those of general penalties:
- The minimum of the tax and default penalty that may be imposed is 30 percent of the minimum that may be imposed under general rules,
In the case of fixed amount penalties, the rate of the penalty is 130 percent of the penalty rate otherwise applicable, - The cap on the default penalty that may be imposed by NAV on the taxpayer is 150 percent of the cap on the default penalty, which may be imposed under general rules, and
- The authority may not waive any penalties.
