VAT stands for value added tax. It is a consumption based tax, added to the net price of goods. In Hungary, VAT is included in the price of goods you can purchase at stores. The net price is indicated only if the seller expects that the customer will be another company, to which net prices matter – since companies can reclaim VAT.
In Hungary, VAT is usually 27%. However, there are exceptions, with some kinds of products having a 5% or a 18% VAT.
From 1 January 2018, the VAT of the following articles will be reduced to 5%
From 1 July 2018, you will be required to immediately register online invoices where the VAT content is above HUF 100,000.
(With 27% VAT, this means invoices where the net value is more than HUF 370,000 and the gross value is more than HUF 470,000.)
Up till now, is the Tax Authority found that a Hungarian company is not compliant with regulations (e.g. failed to pay taxes or contributions), one of the more lenient penalties was the suspension or revocation of the VAT number of the company. This meant that the company was not able to issue any further invoices until it became compliant again (e.g. until they pay the missing taxes and contributions), when their VAT number was reissued to them.
From 1 January 2018, this penalty does not exist. It is be replaced by fees and, in more grievous cases, by the permanent deletion of your VAT number.
For other articles on the 2018 changes to taxation, check out the accountancy section of the Helpers blog.
If you own a Hungarian company, you have to pay certain taxes and contributions after the dividend you take based on whether or not you are a tax resident in Hungary.Bővebben
Calculating the taxes on dividend and dividend advance is a complex task, so make sure to ask your accountant or payroll specialist to advise you on your specific case before you take dividend from your Hungarian company.Bővebben