In 2015, taxpayers shall again take several tax changes into consideration during their business calculations in Hungary. In our present news we present the changes In VAT that in our opinion have the most significant impact on everyday practice for business in Hungary.
Transactions with periodic settlement
According to the present regulations, tax payment liability in the case of transactions with periodic settlement (e.g. lease agreements, periodically settled advisory services) emerges on the due date of the payment of the countervalue .
According to the new regulations, in case the parties agree in periodic settlement or payment in return for supply of goods or for provision of services, or the countervalue is charged for a specific period, then the date of fulfilment, and consequently the due date of the tax liability is basically the last day of the above period.
Nevertheless, in case
- the issuance of the invoice for the given period and the due date are earlier than the last day of the given period, then the tax payment liability emerges at the date when the invoice is issued ;
- the due date of the countervalue of the given period falls later than the last day of the given period, then the tax liability emerges on the due date, at latest 30 day s after t he last day of the given period.
In case of accounting, tax advisory, audit services, the above rules shall firstly be applied on settlement periods the first day of which and the due date of their counte rvalue fall after 30 th June 2015. In the case of other services, supply of goods, the new rules are first applicable on those settlement periods, the first day of which and the due date of their countervalue fall after 1 st January 2016.
Declaration in connection to the VAT liability of residential property sale
In case the taxpayer chose VAT liability instead of VAT exemption with respect to the sale of residential properties and other real estates, then he is not allowed to change his decision for 5 years counting from the time of the declaration. As a transitional rule, the sale of a residential property may be exempted from VAT, and the respective declaration shall be submitted to the tax authority until 28 th February 2015 at latest.
Domicile recapitulative statement
According to the provisions currently in effect , recapitulative statement shall be made about suppliers and supplier invoices with a deductible tax amount reaching or exceed ing 2 million Forints in the declaration period, as well as about invoices issued by taxpayer, the taxable amount of which reaches or exceeds 2 million Forints. The 2 million Forint threshold will be reduced to 1 million from 2015. Accordingly, when the amount of charged tax reaches or exceeds 1 million Forints, the first 8 digits of the customer’s tax number shall be indicated in the issued invoice.
Contact our tax advisors in Hungary for all VAT questions!