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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 the former VP Global Indirect Tax at Avalara