Hungarian Tax Changes in 2018 – Good to Know Part 1.
This year also brought some important changes to Hungarian taxation and we will cover them in our following articles.
The changes are mainly favorable to the real estate market, so the tax package has brought an optimistic mood to it, but there have also been important changes in many other areas. Krisztián Cornides, financial manager and tax advisor of Tower International, helps you find yourself out about the tremendous amount of tax changes.
- The reduced VAT rate has been extended to several areas. From 1 January 2018, the VAT rate for Internet access services ranged from 18% to 5%,the VAT rate of consumption fish from 27% to 5%, and the VAT per capita and offal of domestic pigs VAT rate is reduced to 5%.
Online Data Delivery
- It is a novelty that VAT entities are required to provide online data on invoices issued with a billing program that have a VAT amount of 100,000 or more.
- The rules for sending real-time billing plans scheduled for 1 July 2018 are planned to be further tightened. In addition to companies established in Hungary, the real-time data transmission over 100,000 forints VAT rates affects only companies with VAT registration in Hungary.
- As of 1 January 2018, a change of VAT rate of 5% is taxed on food and on-site non-alcoholic beverages.
Changes in Taxation Procedures
- Reporting of accounts held with foreign financial institutions:
From January 1, 2018, the taxpayer is obliged to report in writing to the foreign bank's account number, the name of the financial institution and the date of opening and closing the account within 15 days of the date of check-in. Failure to comply with the notification obligation, delay or incomplete fulfillment of the notification obligation, the state tax authority may be liable to the taxpayer for fines of up to 600,000 forints.
- Tax payment:
From January 1, 2018, the legal institution of the tax payment instrument will be introduced in the case of persons who are not involved in tax registration obstacles, but who have tax debts or tax debts for those who intend to participate in a new company.
- Disclosure of taxpayers who fail to declare VAT:
Starting on the day following the entry into force of the amending law, on the website of the State Tax Authority, the data of taxpayers who fail to fulfill their VAT reporting obligations over two consecutive disclosure periods are kept up to date.
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