Summary 39 posts
When a foreign company carries out transactions in Hungary for which the place of supply is in Hungary and are not subject to international reverse charge, that company must apply for a Hungarian tax number. In such cases, the foreign company may possess tax numbers in multiple countries, similarly to dual or multiple citizenship for individuals.
Read moreAt the beginning of October 2024, once again, the Court of Justice of the European Union ruled in favour of the taxpayers in a case regarding the right to deduct VAT. Although the judgment was delivered in a case in Romania, its findings can make a significant contribution to the successful exercise of the right of Hungarian businesses to deduct VAT.
Read moreThe Court of Justice of the European Union (CJEU) has ruled (C-746/22) that a Hungarian rule which does not allow foreign taxpayers to submit their VAT refund documents even in the second instance procedure is not in line with the EU law. The CJEU found that the Hungarian legislation infringes the principle of VAT neutrality and the principle of effectiveness, as it prohibits taxpayers from providing the additional information requested by the first-tier tax authority in an appeal to the second-tier tax authority.
Read moreCompanies organising a conference, event or exhibition abroad – whether it is their own event, or an event organised abroad by an event management company – need to be aware of the circumstances when they are to apply for a foreign VAT number or pay VAT abroad. This is because failure to comply with VAT obligations can lead to heavy default penalties and tax fines.
Read moreIn 2024, numerous companies in Hungary are required to make a CBAM declaration, based on a European Union regulation* adopted in 2023, regulating a mechanism to offset the carbon intensity of imported goods. There are still many unanswered questions regarding the obligation known as the carbon duty. Yet, CBAM will be a new, long-standing, and challenging obligation.
Read moreWe have summarised the Hungarian VAT changes for 2024 that businesses should be aware of in relation to VAT in 5+1 points.
Read moreIn 2024, the Tax Authority of Hungary (NAV) will make an innovative step in the field of VAT declarations with the introduction of eÁFA (or eVAT),which will base declarations on data instead of the previously accustomed aggregated data. In order to simplify their VAT declarations and reduce administrative burdens with the help of eVAT M2M, companies must undertake several important steps.
Read moreAs 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.
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