TAX LAW CHANGES 2022

Value-added tax

Changes included in the autumn tax law package

The law amendment extends the scope of tax-exempt transactions, mainly in relation to the COVID19 pandemic. Under certain conditions, the VAT Act will exempt imports of goods by, and supplies of goods and services to, the European Commission or an agency or body established under EU law.

VAT changes adopted during 2021

Attention is also drawn to the provisions adopted by Government Decrees promulgated on 8 November 2021:

• The reverse charge on cereal products, iron and steel products, as well as transfer of tradable greenhouse gas emission quotas which was originally due to be abolished on 30 June 2022, will continue to apply after that date. The temporal scope of the provision will presumably follow the duration of the emergency;
• The current rules on the eVAT draft (“eÁfa”) which was expected to launch on 12 November 2021 are suspended. The system that will be implemented will be significantly more complex, so it will be usable by all taxpayers from the start and will be able to support businesses' administrative processes through machine-to-machine communication. In the process of being completed, in addition to the possibility to query the online cash register log file, the data in the customs system will also be made available for query.

Changes to the rules on the exemption from the obligation to issue receipts from 1 January 2022:

Based on the law amendments adopted in autumn 2020 (Act CXVIII of 2020 on Amending Certain Tax Laws), the rules on exemption from the obligation to issue receipts for vending machines will be amended from 1 January 2022. From this date, the exemption will no longer be conditional on the use of a vending machine. There will be no obligation to issue a receipt if the consideration for the goods or services is paid by way of a vending machine as defined in Act on Tax Procedure Rules.

Removal of 5% VAT on food and drink sold to takeaway or home delivery

The law promulgated on 17 November 2021 (Act CXV of 2021 on the Entry into Force of Act XCIX of 2021 on Transitional Rules in Relation to Emergency Situations) also removed from the law the 5% VAT rate on food and drink sold for takeaway or door-to-door delivery which was in force until 31 July 2021.

Updated: 10 December, 2021.

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Should you have any questions regarding the latest tax law changes, the tax experts of VGD Hungary will be pleased to assist you.

This newsletter provides general information and does not constitute tax advice.