Favourable tax changes in Hungary for 2022 and further important tax related news

The government decrees on taxation published on 8 November 2021 include favourable tax changes to help market players in certain sectors of the economy in view of the continued existence of the pandemic emergency. Changes are also being made to the government's plans for tax administration to help adaptation of market participants to changes in the tax environment.

Below, we summarise the most important provisions of the relevant government regulations affecting taxation, as well as the changes for 2022 related to the provision of data by the Central Statistical Office.

1. Temporal extension of the reverse charge rules

The reverse charge arrangements for cereal products and iron and steel products, which were initially to be abolished on 30 June 2022, will continue to apply after this date.

The Minister of State for Taxation at the Ministry of Finance emphasized that the change is necessary to meet the needs of cereal producers in the market and is intended to continue to protect the interests of fair operators in the long term.

Although the government decree does not directly link the extension of the application of the reverse charge to the duration of the emergency, it is expected that the temporal scope of the provision will follow the duration of the current pandemic emergency period, given that the government decree in question is linked to the emergency period.

2. The eVAT return preparation service of the Tax Authority for the taxpayers is not yet launched

In accordance with the relevant government decree, the rules on the draft eVAT to be prepared by the Hungarian Tax Authority, which were expected to be published on 12 November 2021, are suspended.

The purpose of the postponement is to allow for the creation of a much more complex system that can be used by all taxpayers from the outset and that can support the business processes of the companies and other market players, as there is a strong demand from market participants to build machine-to-machine communication.

Notwithstanding the above, during the development process not only the possibility the access of the online cash register logs, but also the data in the customs systems will be provided.

3. Interoperability of SZÉP card sub-accounts

The government will extend the interoperability between the various sub-accounts of the SZÉP-card, meaning until 30 September 2022, you will be able to pay for any of the affected services (catering, accommodation, leisure) from the funds transferred to the various sub-account.

4. Intrastat changes for 2022

The Central Statistical Office has recently sent an email to all taxpayers subject to Intrastat informing them that the following restrictions will apply to Intrastat reports to be submitted in 2022:

- the indication of the "country of origin" and "partner tax number" will be compulsory for the delivery direction;

- new transaction codes will be introduced;

- the current CN codes will also change.

Nov 11, 2021.

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In case of any questions, VGD Hungary's team of experts is kindly at your disposal.

This newsletter is only for general information purposes and should not be considered as tax advice.