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Hungarian VAT 2015 update

  • Dec 15, 2014 | Richard Asquith

Hungarian VAT 2015 update

A range of Hungarian VAT measures are to be introduced in 2015. The principle ones include

  • VAT registered businesses will lose their right to deduct any input VAT suffered with immediate effect on having their numbers cancelled by the tax authorities
  • Foreign companies will not be required to apply for a Hungarian VAT registration where they are using tax warehouses only for the purposes of intra-community trade. Any domestic supplies will trigger a registration requirement
  • The domestic reverse charge is to be extended to the provision of temporary staff in the construction sector. This is an anti-fraud measure.
  • Changes to the rules on advance payments to ensure no party receives tax advantages by the use of non-cash payments / barter
  • The provision of portfolio asset managements services will be VAT exempt.

All of the above measures will be effective from 1 January 2015.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.