Tax Newsletters 2020
You can read the Mazars Hungary’s tax newsletters. We would like to inform our clients and partners about actual tax news.
Measures of economic protection: here is the second pack
On the basis of the special legal order introduced due to the COVID_19 coronavirus pandemic, on 23 March 2020, the Government of Hungary adopted new measures by way of a government decree, the aim of which is the alleviation of the economic impacts of the pandemic.
Important changes from 1 July concerning online invoice data supply
The tax package approved in December 2019 included some significant changes in the area of the online disclosure of invoicing data. According to the amendment, the changes will enter into effect on 1 July 2020.
Here are the first measures of economic protection
Since the declaration of the COVID_19 coronavirus disease as a pandemic and the appearance of the first diagnosed patients in Hungary, events have picked up speed also in an economic sense. In the past few days, the Government of Hungary has introduced several measures designed to assist both economic operators and private individuals, as well as to minimise the negative impacts of this transitory period.
Options in case of temporary tax-related difficulties
Several proposals have been published in the recent days in connection with the temporary measures related to financial and taxation affairs with which the government should help businesses in surviving the economic difficulties of the upcoming period.
Related party financial transactions
On 11 February 2020, the OECD published its final guidance on the transfer pricing of intra-group financial transactions, which reacts to Actions 4, 8-10 of the BEPS (Base Erosion and Profit Shifting) Action Plan.
Increased minimum wage and its effects in 2020
From 1 January of this year, the amount of the minimum wage for full-time employment was increased to HUF 161,000, while the amount of the guaranteed wage minimum changed to HUF 210,600. With respect to the minimum wage, this means an 8 percent increase from last year. Our newsletter aims to provide an overview of the effect of this change on the most important payment obligations arising in the life of companies.
VAT Consultancy - The VAT treatment of international supplies of goods
A lot may depend on the certification of delivery in case of tax-free intra-Community supplies of
goods. In the life of most businesses involved in international transactions, VAT constitutes the biggest
tax risk, since the Hungarian VAT rate is very high, and the applicable rules are rather complicated.
Factors such as who is the buyer of the goods sold, for what VAT number that buyer requests the
invoicing, to what address is the delivery ordered, whether the goods are invoiced in a simple
supply, or it is a part of a chain transaction or a triangular deal, who ordered the transportation,
etc.
goods. In the life of most businesses involved in international transactions, VAT constitutes the biggest
tax risk, since the Hungarian VAT rate is very high, and the applicable rules are rather complicated.
Factors such as who is the buyer of the goods sold, for what VAT number that buyer requests the
invoicing, to what address is the delivery ordered, whether the goods are invoiced in a simple
supply, or it is a part of a chain transaction or a triangular deal, who ordered the transportation,
etc.
EFFECTIVE FROM 1 JANUARY 2020, IT IS POSSIBLE TO RECLAIM THE VAT PAID ON BAD DEBTS
Many Hungarian companies have been faced with an unfair situation when one of their customers failed to pay, and they had to account for not only the net value of the goods or services, but until 2019, the supplier also had to pay the amount of the VAT. This was because the earlier Hungarian rules – in contrast with the EU Directive – excluded the possibility of the supplier of such goods or services reclaiming the VAT.