Tax News - Value-added tax

The reduced 5% VAT rate currently applicable to new residential properties will remain in effect until December 31, 2026, provided that the building permit becomes final by that date. Under certain conditions, the reduced tax rate may also apply to properties handed over by December 31, 2030.

From 2025, the special place-of-supply rule will no longer apply to online events and their ancillary services. Currently, for services granting access to cultural, artistic, scientific, educational, entertainment, sports, or similar events (including exhibitions, fairs, and presentations), as well as related ancillary services, the place of supply is where the event is physically held. However, for online events, the general rule will apply instead, meaning that the place of supply will be the location where the business customer is established.

The introduction of the e-receipt will be postponed by six months by the Government, with the new planned implementation date set for July 2025.

E-receipts can only be issued and generated electronically. The issued e-receipt will be accessible to the purchaser of the product or the recipient of the service in the receipt repository through a buyer application.

Upon request from the purchaser of the product or the recipient of the service, or in cases specified by law, a paper copy of the issued e-receipt must be provided.

The mandatory data content of electronic receipts (e-receipts) will be more extensive than that of paper receipts. In addition to the data normally included on a receipt, e-receipts must also contain the following information: the name of the sold product, its global trade item number (GTIN), quantity, applicable tax rate percentage, reference to tax exemption, and reference to margin scheme taxation.

Taxable persons must report receipt data to the Tax Authority within three calendar days of issuance if the receipt was not issued using a cash register or an electronic cash register. This data must be reported on the NAV platform daily, aggregated and broken down by tax rate.

The assignment of VAT deduction rights related to product imports to a customs representative will be subject to stricter administrative conditions in the future. Even if the current legal conditions are met, an importer may only assign its VAT deduction rights to an indirect customs representative if it is required to file monthly tax returns and is not classified as a high-risk taxpayer. Importers without the trusted taxpayer status under the Tax Procedure Act must also meet the additional condition that the indirect customs representative's partner audit must not identify any tax risks. Additionally, the indirect customs representative must report the audit results to the state tax and customs authority. This partner audit must be conducted before entering into an indirect customs representation contract and, in the case of an ongoing mandate, must be performed on a monthly basis.

As part of the VAT return, data reporting on incoming invoices must now include invoice amounts without rounding to the nearest thousand forints. However, the VAT return lines related to incoming invoices will continue to present data rounded to the nearest thousand forints.