Hungary tightens on VAT compliance inspections
- European News
- 6 February 2013 | Richard Asquith
The Hungarian VAT authorities have this week issued detailed plans for stepping up VAT audits and inspections in the forthcoming year. Hungary has faced extreme problems with loss of VAT revenues in recent years due to VAT fraud. This is partly because is has the highest VAT rate, 27% in the European Union.
The National Tax and Customs office has said that it will pay particular attention to the following areas:
- VAT cash accounting compliance, where the company under review has been given authorisation
- The application of the VAT reverse charge, whereby the supplier does not charge VAT and the purchaser accounts for both the input and output VAT
- Sales (Despatches) and Purchases (Arrivals) of goods from other EU member states. This trade, known as Intra-community trade is nil rated for VAT, but has been subject to major frauds.
- Online retailers selling to consumers in foreign countries
- Specific high-risk industries, including: trade in meat; supply of manpower; professional services; private health care and dentistry; and trade in commodities
The above details were published on 5 February 2013.