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The Hungarian regulation on foreigner’s VAT refund violates EU rules, according to the advocate general's opinion

Péter Barta | 18 December 2023
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Péter Barta

According to the opinion released yesterday by the advocate general of the European Court of Justice, the Hungarian regulation that prohibits foreign taxpayers from submitting their documents in the second instance (appeal) procedures in VAT refund cases violates European law. If the final judgment will align with this opinion, it would not only simplify the process for foreign businesses to claim VAT refunds in Hungary but would also open the possibility to reclaim previous VAT payments.

Closure of Shops: The Red Card Comes Immediately

Péter Barta | 18 December 2023
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Péter Barta

The rules for shop closures are tightening, and next year, those who violate invoice or receipt obligations may not necessarily get away with just a warning. Considering that even a few weeks of closure can cause significant damage to a company's life, it is advisable for businesses to tighten their processes and supervision of their employees.

2023 audit schedules – NAV hot on the heels of the market

Péter Barta | 29 March 2023
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Péter Barta

The tax authority (NAV) has recently published its audit schedule for 2023, which shows that it has adapted remarkably quickly to changes in the market. While the focus of its audits this year will continue to be on the high-performing perennial favourites and on large taxpayers, there’ll also be a strong focus on “support” procedures.

How will employers be affected by the change in KATA?

Péter Barta | 3 August 2022
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Péter Barta

The September amendment to the KATA Act has fundamentally restricted this form of taxation. According to current estimates, only 100,000 of the 460,000 KATA-paying entrepreneurs will continue to be able to stay in the system, the rest will be squeezed out. Meanwhile, the amendment affects not only those subject to KATA, but also those who employ them. Below is a hand-picked selection of these effects.

Taxation of influencers: under the table or above board?

Péter Barta | 24 March 2022
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Péter Barta

More and more people are earning money online as bloggers, vloggers or influencers. Through social media, you can reach millions with a well-targeted message, and this can result in a substantial income. These incomes are subject to tax – but it’s important to think about how to pay it.

Tax affairs and criminal justice – hand in hand they go...

Péter Barta | 26 November 2021
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Péter Barta

Recently, the tax authority’s audit practices have changed appreciably. While until recently, tax audits were mostly launched as fully standalone procedures, today the tax authority (NAV) is increasingly initiating criminal proceedings alongside its tax audits. This is particularly the case in bogus-invoice deals affecting VAT, as well as in excise-duty and certain customs matters. But what’s behind this?

KATA in the crosshairs

Péter Barta | 12 February 2020
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Péter Barta

While dozens of programmers, engineers and hairdressers continue to opt for KATA [the fixed-rate tax for enterprises categorised as “small taxpayers”] in Hungary, the tax is increasingly coming under fire from all sides. Apparently, the Hungarian Tax Authority (NAV) is stepping up its investigations into businesses who employ KATA payers, and at the same time rumours are also flying about a planned KATA tightening.

Accidents at work – which also hurt the employer

Péter Barta | 1 August 2019
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Péter Barta

During a posting, the employee is bitten by a tick. He throws his back out while loading. He gets sunburnt while working outside. A common feature of these cases is that they are all accidents at work. Yet, if the employer does not pay attention to these, he can find himself at a serious disadvantage.

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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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