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Hungary – Electronic Tax Administration

By March 15, 2018July 10th, 2021No Comments

The Hungarian tax authorities have restructured the method of electronic communication with the clients. Until now foreign companies with Hungarian VAT registrations could file VAT returns in paper form unless they had to file European Sales and Purchase Listings (ESPL). According to the new rules all companies having monthly VAT filing liabilities have to file VAT returns electronically.

Hungarian changes in electronic tax administration

The Hungarian tax authorities have restructured the method of electronic communication with the clients. Until now foreign companies with Hungarian VAT registrations could file VAT returns in paper form unless they had to file European Sales and Purchase Listings (ESPL). According to the new rules all companies having monthly VAT filing liabilities have to file VAT returns electronically.

In addition, clients can act in tax audits only if they have a registration for electronic tax administration, because any documents requested by the tax authorities during the tax audit have to be filed in a special electronic format. Registered persons can be those who have a special client gateway registration for general state administration, which can be applied only if the person has a Hungarian tax ID and visits a Hungarian document office personally. Hungarian consultants usually have this registration, so they can be authorised to act on behalf of clients in case of tax audits and electronic filing.

Other claims (like application for monthly filing instead of quarterly or claims for tax reductions, etc.) can’t be filed in paper form any more in the future, either. Clients who do not have a person registered for electronic tax administration are called up by the tax authorities to appoint a proper person within 8 days.

Special tax for food sellers

Distance sellers and other VAT registrations selling any types of food (incl. feed crops, dietary supplements, vitamins as well) have to pay a food chain supervision tax in Hungary which is 0.1% of their sales of these products. (Earlier only taxpayers having Hungarian corporate tax liability were subject to this tax.) The first tax return is to be filed by 31 May 2018 based on 2017 sales, and the tax is to be paid in two parts by 31 July 2018 and 31 January 2019. This tax liability requires a special registration at the competent authority where the tax returns should be filed electronically as well.

ABT Treuhand Group is ready to support you or your clients in electronic tax filing and tax audit processes in Hungary. If you require more information please contact: Ákos Cseuz at: akos.cseuz@abt.hu.