What transactions are subject to the new EKAER requirements?
The new requirements apply only to the intra-Community acquisition of certain affected goods (sensitive goods) and their import for other purposes.
This means that in Hungary the new regulation does not affect intra-Community supplies of goods, exports for other purposes and first domestic supplies. Also, it is important to note that the new EKAER requirements do not depend on the place of origin of the goods.
What goods are subject to the new temporary EKAER decree?
The goods affected by the Government Decree imposing stricter EKAER requirements on a temporary basis fall into two categories:
1.Goods and food products subject to a reporting requirement: the goods listed in Decree No. 51/2014. (XII. 31.) NGM. These include food products and other goods subject to a reporting requirement (prior to 2021, these were known as risky food products and other risky goods).
These goods had already been subject to the EKAER requirements, which means that an EKAER number had to be requested in such cases, although taxpayers could be exempted from the obligation to provide security if certain requirements were met (e.g. reliable taxpayer status).
An EKAER number still needs to be requested for these products, but the reliable taxpayer status no longer provides an exemption from the obligation to provide security in the case of intra-Community acquisitions of such goods and their import for other purposes.
2. Certain so-called "sensitive products" listed in the schedule to the decree. This is a new category of goods to which the EKAER requirements had not previously applied; however, since 19 April 2023, the intra-Community acquisitions of such goods and their import for other purposes have also been subject to the EKAER requirements. The reliable taxpayer status does not provide exemption from the obligation to provide security in the case of intra-Community acquisitions of such goods and their import for other purposes.
These goods include the following:
- Wheat and meslin (CTH 1001)
- Rye (CTH 1002)
- Barley (CTH 1003)
- Corn (maize) (CTH 1005)
- Rape or colza seeds, whether or not broken (CTH 1205)
- Sunflower seeds, whether or not broken (CTH 1206)*
*Customs tariff heading
EKAER requirements: applicable to three categories of goods starting from April 2023
In summary, three categories of goods have been subject to the EKAER decree since 19 April 2023:
- The food products and other goods subject to a reporting requirement listed in Decree No. 51/2014. (XII. 31.) NGM. The obligation to provide security applies to the intra-Community acquisition of such goods and their import for other purposes. The first taxable domestic supply of such goods is subject to an obligation to provide security, from which exemptions are available (e.g. through the reliable taxpayer status).
- The building materials listed in Government Decree No. 403/2021. (VII. 8.). The obligation to provide security does not apply to these goods.
- Certain sensitive goods specified in Government Decree No. 130/2023. (IV. 18.). The EKAER requirements and the obligation to provide security only apply to intra-Community acquisitions and imports for other purposes.
