Summary 39 posts
UK 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, it is important to examine whether there is a requirement to register for VAT abroad and whether any VAT liability arises abroad. Below we present five cases where companies are required to pay VAT abroad in connection with cross-border transactions and must therefore apply for a tax number.
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.
Read moreAre there significant costs reallocated within the company or group? As these also affect the company s VAT position, it is important to manage costs properly. Developing a proper practice with a view to the VAT is an important aspect from the start, however, VAT risks can still be reduced if the company chooses to change its cost reallocation methodology on the fly.
Read moreThe OSS/IOSS, i.e. the One Stop Shop / Import One Stop Shop system launched on 1 July 2021 supports webshops by allowing them not to register for VAT purposes and file tax returns separately in each member state concerned by their sales.
Read moreThe changes of VAT regulations may concern several sectors and companies; we have collected the areas worth paying special attention to in 2020 due to amendments of local or European legal regulations.
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