Bringing VAT “back from the dead”

Tamás Fehér | 24 July 2018

Companies are faced with countless situations where, for reasons beyond their control, they are unable to collect the money owed to them, including its VAT part. In such cases the tax authority often refuses to allow the reclaim of the lost VAT even where this would not incur a loss for the budget. Based on recent judgements by the European Court of Justice (ECJ), however, the VAT should be recoverable in many cases of this kind.

Tax planning with an open book

Tamás Fehér | 29 June 2018

Based on a recently announced EU directive, your name and any tax advice you have received could end up with the tax authority. From July 2020, tax advisors, or in certain cases the taxpayers themselves, will be required to inform the tax authority of the details of certain tax planning structures that are classified as aggressive under the new directive. And what’s more, the disclosure obligation will apply retrospectively to all structures that taxpayers started implementing after 25 June 2018.

“Small” taxes with some big pitfalls

Péter Barta | 20 June 2018

The popularity of simplified, or “small” business taxes (KATA, KIVA) grows unabated, with thousands of engineers, computer programmers, hairdressers and lawyers opting for one or other of these schemes. Meanwhile, few are fully aware of the risks that these types of tax can entail. The potential consequences are measurable in hard tax forints and penalties, both for payers of these forms of tax and for the businesses that provide their income.

Can final NAV decisions be re-contested?

Ádám Fischer | 30 May 2018

Due to a seemingly trivial error, a series of NAV decisions are being overturned in court: a good many of them don’t contain the proper signature. This procedural error, however, could be useful not only in ongoing lawsuits, but possibly in past, closed procedures too – hundreds of businesses could claw back the tax forints they thought were lost for good.

Are we mischarging the VAT on leasing?

Tamás Fehér | 11 May 2018

Following the recent reinterpretation by the European Court of Justice (ECJ) of the definition of closed-end finance leasing, a new Advocate General (AG) opinion has exploded another “VAT bomb” in relation to current practice. For many years, leasing companies have divided the fees payable under finance lease contracts into a VATable and a non-VATable part, but the latest AG opinion states that the whole lease fee should be liable for VAT in its integrity. This could have serious implications for the Hungarian leasing market too, so it is worth keeping an eye on how the case progresses.

Tags:
eu, leasing, VAT

Company law pitfalls – with serious consequences

Ágnes Bejó | 7 May 2018

The new Civil Code that came into force a couple of years ago broadened the autonomy of companies, which are now free to shape their internal organisation and operation to their own needs. Nevertheless, there are still several lesser-known, rigid company-law rules that, if ignored, can entail severe legal and financial consequences.

TBSZ: An oldie, but a goodie

István Csővári | 19 April 2018

Ever since it was introduced eight years ago, the long-term investment account (TBSZ) has been a source of continuous excitement for tax advisors and their clients interested in saving on tax. This is not surprising, as the TBSZ allows business owners to take the income generated by their companies without any tax liability. And although some classic approaches to tax planning based on the TBSZ have closed over time, others are still available.

If you want to litigate, be careful where you do it

Levente Bihari | 10 April 2018

From early this year a new law accords to states the jurisdiction over lawsuits, i.e. which country has the right to decide on cases having international elements. Nevertheless, it is still true that in international legal disputes one of the most important (and far from simple) issues is: which country’s court will decide the dispute and under which country’s laws.

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Who is this blog addressed to?

The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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