Supreme Court: VAT on bad debts is to be refunded

Tamás Fehér | 17 March 2021

For the first time, the Supreme Court ruled on the merits concerning the refund of VAT on bad debts – and the decision was in favour of taxpayers. The judgments serve as a guideline in a number of similar cases, and may even help taxpayers with refunds claimed under the rules that came into force in 2020.

Greenfield investments could gain momentum

Levente Bihari | 11 March 2021

2021 could greatly simplify the parcelling of jointly owned arable land. Also, the new rules will settle the status of land registered in the name of unidentifiable owners. At the same time, a clearer and more transparent title structure could not only enhance farming efficiency but also boost greenfield investments.

Henceforth taxpayers are required to “indict themselves”

Tamás Fehér | 24 February 2021

First reports under DAC6 were due recently from those who are parties to a cross-border transactions. Concurrently, at the last possible moment, the Hungarian Ministry of Finance published a Guide on certain issues related to the fulfilment of the reporting obligation. It is advisable, in particular, for accountants, consultants, lawyers and banks to carefully study this 38-page document, as any of them could easily fall within the scope of the reporting obligation.

The coronavirus is about to change the country of tax payment

Anilla Gondi | 8 February 2021

We already know that Covid is changing the way we live and work. We’re keeping away from each other, we’re traveling less, we’re talking to each through video calls, and we’re working at home. But most of us haven’t thought about how these changes may affect the country our company pays taxes in.

Too few civil actions lead to less stringency in the conduct of proceedings

Zoltán Dobos | 5 January 2021

The new Civil Procedure Code), enacted almost 3 years ago, placed the conduct of proceedings on stricter foundations. As a visible result of this, the number of lawsuits has dropped dramatically in recent years: more than 20% fewer disputes have been filed with the district courts and around 50% fewer at the regional courts than before. Perhaps this is also the reason why, under a bill recently passed, the harsh rules that had seemed carved in stone are likely to be softened. 

With VAT or without it?

Levente Bihari | 4 December 2020

VAT can cause a lot of complications when it comes to interpreting our regular contracts. Does the purchase price include VAT if the parties have not explicitly stated so? Should a guarantee withholding be made from an amount that includes VAT? Does the stamp duty need to be paid on the gross or the net price of the property? These questions are particularly timely in light of the recent reduction in the VAT rate on newbuild homes: who stands to benefit from this – the builder or the apartment buyer?

How should we write a “Covid clause”?

Péter Gyimesi | 19 November 2020

Apart from all its other nasty effects, the coronavirus has shown how unprepared lawyers are. Not long after the outbreak of the virus, it became all too obvious that the “force majeure” clauses traditionally worded along Anglo-Saxon lines were not worth the paper they were written on: they simply weren’t suitable for addressing the kind of problems that were arising in the new situation. Based on what we’ve learnt over the past few months, however, it’s now a lot clearer how a “Covid-proof” contract should be drawn up.

VAT ninjas enjoy an advantage – reclaiming VAT on bad debts isn’t easy

Tamás Fehér | 16 October 2020

Reclaiming VAT on bad debts under the new 2020 rules may well conjure up images of a TV show obstacle course.  Initial experiences suggest that anyone trying to reclaim VAT will be up against the wall. But the undertaking isn’t unfeasible.

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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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