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VAT on bad debts – whoever misses this one really will miss out

Tamás Fehér | 20 September 2021
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Tamás Fehér

For years now, opportunities to reclaim VAT on bad debts have come up again and again. Although many had thought they had definitely missed the boat on this one, taxpayers have just been given one last chance.

Supreme Court: VAT on bad debts is to be refunded

Tamás Fehér | 17 March 2021
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Tamás Fehér

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.

Henceforth taxpayers are required to “indict themselves”

Tamás Fehér | 24 February 2021
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Tamás Fehér

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.

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

Tamás Fehér | 16 October 2020
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Tamás Fehér

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.

Another milestone in VAT recovery on bad debt

Tamás Fehér | 23 July 2020
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Tamás Fehér

Recently, a Hungarian court accepted the right of a taxpayer to recover VAT on a bad debt where the VAT claim has already elapsed. The court made it clear that the statute of limitations does not count from the day of the original invoice but from the date when the debt became definitively irrecoverable. This decision may give hope to taxpayers in many pending cases.

Tax types in Hungary: could there be a U-turn after five years of tax cuts?

Tamás Fehér | 10 June 2020
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Tamás Fehér

While there were still as many as 60 types of tax in Hungary five years ago, this number was reduced to 54 by the end of last year. This process was interrupted by the recent introduction of crisis taxes. It remains to be seen whether this trend will now be reversed.

Arbitration court or ordinary court – how should we choose?

Tamás Fehér | 3 February 2020
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Tamás Fehér

For two years, new rules apply to proceedings at the ordinary courts, which make litigation a lot more difficult and formalised. As a result, lawyers are increasingly confronted with the question of whether the arbitration court or the ordinary court is more appropriate for ruling on any potential disputes. Of course, the time-worn answer is: it depends… But on what?

5 ways to win a lawsuit in Hungary

Tamás Fehér | 13 November 2019
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Tamás Fehér

One does not simply walk into the courtroom and hope for the best. To win a civil case you will need to navigate through the strict formalitites that were introduced by the new Hungarian civil procedure code. It closed many well-known paths of litigation tactics and antics but also opened up new possibilities. 

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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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