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Hungary to update VAT rules following EU ruling

  • VAT
  • 20 August 2014 | Richard Asquith

Hungary to update VAT rules following EU ruling

The Hungarian government has confirmed that it will amend its VAT laws to comply with a European Commission ruling.

Currently, Hungarian VAT registered payers may reclaim excess VAT paid - VAT credits - by either carrying it forward to future periods to offset against any liabilities, or by seeking an immediate refund. However, any credit cannot be paid where it includes an element of costs, or input VAT, that has not yet been paid for in cash terms. This would often mean that credits would always have to be carried forward. This is in conflict with the EU VAT Directive.

The National Economic Ministry has now confirmed that it will amend this rule, and repeal the current rules. This will bring it into line with the EC's March 2010 ruling.


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 this year won International Tax Review's 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.