Tax News - Value-Added Tax

The amendment makes it possible for entrepreneurs residing within the EU to claim back VAT in the course of a VAT refund procedure paid for acquiring real estate in Hungary without registering for VAT in Hungary. The transitional rules of the amendment stipulate that VAT refund can be claimed at the earliest for VAT charged after 31 December 2021.

As of 1 January 2024 the redemption system of products distributed domestically with mandatory redemption charge will be introduced. The products covered by the system is listed in the Government decree 450 of 2023 (X. 4.), which entered into force on 1 November 2023. The tax package contains the VAT-related rules. Distributors are not required to pay VAT on the redemption charge at the time of the sale, but only for those packaging which are not redeemed. The amount of products that were not redeemed shall be determined by the distributors at the end of the calendar year, and the tax payment liability occurs at the same time.  The VAT base for not redeemed products is the redemption charge for these products, which is a gross value based on the amendment, and the payable VAT must be determined from above, with 21,26 VAT content. If the amount of redeemed packaging exceed the number of distributed packagings in the given calendar year, then no VAT is payable. However, the distributor is not entitled to claim back VAT based on the surplus.

The tax package also contains explanatory and authorizing provisions connected to electronic receipts.