Tax-exempt product imports without tax collateral and even without a tax number!

Being a VAT expert, tax-exempt product imports are close to my heart. I recently attended a conference where most of the guests were managers of companies importing products in Hungary and then selling and transporting them after customs clearance to companies in other member states.

Technology, productivity and economic growth; where does the west go from here?

Environmental product charge: approaching deadline!

In 2012, HUF 57 billion, slightly less than the targeted HUF 60 billion, was collected from product charge. The revenue target was not reduced for 2013 either, we can therefore assume that the tax authority will use every effort to meet the target.

Environmental Product Charge, 2013

Accordingly, until 14 February 2013, returns, payments, supplementary filings and self-revisions relating to the environmental product charge will have to be submitted to the Customs Authority while after this date, these will have to be filed with NAV.

Enhanced tax authority scrutiny

Guideline 3004/2013 already available (only in Hungarian language) on the website of the Hungarian Tax and Customs Authority (NAV) includes the criteria to be inspected, the audit aspects and the sanctions to be applied on a standard basis during the tax audits of enterprises having only VAT registrations in Hungary.

Tax Treaty non-discrimination provisions considered in two recent UK group relief judgements

The courts found in the Felixstowe Dock and FCE Bank cases that denying the group relief between two UK resident companies was not in line with the Tax Treaty non-discrimination provision where the UK companies were held through a non-UK parent. Both cases concerned group relief between UK companies – cross border group relief was not claimed.

EU warning in tax matters: is trouble ahead with local business tax and insurance tax also?

As the action for failure to fulfil obligations filed against Hungary in relation to the special taxes imposed on the telecommunication and retail sectors enters into its second phase, a suspicion arises that, in time, a similar future may await the recently accepted amendments concerning insurance tax and local business tax.

No VAT registration threshold for foreign businesses making supplies in the UK

From 1st December 2012, significant changes to the UK VAT registration requirements for non-established businesses doing business in the UK come into effect. These changes may result in your clients now having to be UK VAT registered. Penalties could apply for non-compliance.

Distant sales: the tax perspectives of e-commerce

In an everyday sense, e-commerce is an umbrella term: if any of ordering, payment, product delivery or the use of services takes place online, we are talking about e-commerce. From a tax perspective, however, it is important to what extent the transactions contain web-based solutions. Distant sales should be differentiated from other activities commonly referred to as e-commerce in respect of invoicing and the VAT treatment of the transactions.

Audit of tax registrations: there will be no witch-hunt

However, despite these reliefs, the Hungarian Tax and Customs Authority (NAV) may audit these taxpayers more frequently. Both the audit practice of the tax authority and the communication relating to the drafts of next year’s tax laws suggest enhanced audits of these enterprises in respect of the records prescribed by the Hungarian Act on Accounting.