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Further Details of the EKAER in Hungary

By December 15, 2014July 10th, 2021No Comments

From 1st January 2015 Hungary has introduced a new obligation for taxpayers to report all transport of goods that involves EU supplies/acquisitions and domestic supplies in an itemized report, if transactions involve road transportation with …

From 1st January 2015 Hungary has introduced a new obligation for taxpayers to report all transport of goods that involves EU supplies/acquisitions and domestic supplies in an itemized report, if transactions involve road transportation with vehicles subject to a road toll (having a total weight of over 3.5 tons). Each individual transport of goods of the affected transactions must be filed separately. The filing must include – inter alia – the license plate of the vehicle, date and time of the departure of transport of goods. The filing must be done before the departure of transport.

Failure to comply with the new reporting regulations may result in penalty of up to 40 % of the transported goods. The tax authority/police has the power to cease goods if the transport is unreported.

The new legislation called Electronic Road Transportation Control System (EKAER) concerns the following transactions if done by road transportation

  • the acquisitions of or bringing in goods to Hungary from other EU countries – the person acquiring goods/addressee must file the report,
  • the supply or removal of goods from Hungary to EU countries and – the supplier or sender must file the report,
  • the first taxable supply of goods to non-final users within the territory of Hungary -– the supplier or sender must file the report.

The new regulation is aimed at reducing tax fraud, however it introduces enormous administrative burden on businesses involved in cross-border trade of goods transported by road. The Hungarian Government expects non-resident entities involved in the transactions above to comply with the new regulation too.

 

Dániel Sztankó
RSM DTM