Are you sure that your intra-Community supply is tax exempt? What documents are required to prove?

As a result of the free movement of goods and globalization, companies sell products to othermember states of the European Union countless times as part of their economic activities. Under certain conditions, intra-Community product sales may be tax-exempt under the Hungarian VAT Act, in accordance with the EU VAT Directive. One of these conditions for tax exemption is that the product is delivered to another member state. Nevertheless, this fact itself is not sufficient, but it must also be proven in the case of a tax audit. In this article we focus only the transportation and the related evidences as part of the legal conditions of the tax-exempt intra-Community transaction, and we do not investigate the further settings.

The Global M&A tax guide has been published

LeitnerLeitner as the a member of Taxand which is the world's largest organisation of independent tax advisory firms, participated in the editing of the Global M&A Tax Guide. It is about local tax rules and developments relating to mergers and acquisitions.

Extra-profit taxes

 The Government of Hungary will introduce an extra-profit tax from 1 July 2022.

VALUE ADDED TAX IN HUNGARY

Value added tax for entities is a pure flow-through, transitory item. Nevertheless, non-deductible pre-tax, falsely assessed VAT and penalties deriving from administrative mistakes can heavily burden the entities’ budget, especially in a country with the highest VAT rate (27% general rate) within the European Union. In the following guideline we will introduce the main principles of the Value Added Tax in Hungary.

Recent tax changes

The following overview addresses recent changes introduced this year so far.