Hungarian VAT 2015 update
- 16 December 2014 | Richard Asquith
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.