VATLive > Blog > Hungary > Hungary coronavirus VAT measures

Hungary coronavirus VAT measures

  • May 1, 2020 | Richard Asquith

1 May - Hungary has introduced today a COVID-19 emergency bank tax. The tax is an additional one-off charge on top of the existing banking tax. The tax is calculated as 19% of the net balance sheet in excess of HUF 50billion.

28 April - shortened the VAT credit period from 75 days to 30 days for small and medium sized businesses (SME). For VAT payers with a good track record of compliance, this will be further shortened to 20 days. In Hungary, SME is defined as: below 250 employees; turnover below HUF 18million per annum; or a balance sheet net total below HUF 15million.

21 April - Hungary is to launch a 2.5% retail turnover tax 1 May for the duration of the COVID-19 crisis.

Update 27 March:
Hungary has delayed the update of its live invoice reporting schema, from 1 April until 1 July 2020.

The Hungarian tax and customs office has issued notice of tax payment deferrals following the spread of the COVID-19 virus. The measures mostly target individuals. However, businesses may apply for tax (including VAT) payment deferrals. But there is a HUF10,000 administrative fee.

The measures for tax and associated penalties and interest include:

  • Postponement of tax payments
  • Step repayment schedule
  • Tax forgiveness

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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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