The Hungarian National Assembly adopted the draft bill to implement the EU’s ‘Quick Fixes’ into Hungarian VAT law. As a result – the changes to the Hungarian VAT act, partly incorporated as part of the summer tax package, are in effect from 1 January 2020.
EU’s ‘Quick Fixes’ in Hungary
The ‘Quick Fixes’ aim to provide clarity, guidance and some simplifications to VAT treatment applies when EU supplies of goods take place. These include:
- Simplification and harmonisation of rules regarding call-off stock;
- The VAT identification number of the customer becoming a substantive condition in order to exempt the intra-Community supply of goods;
- Simplification of chain transactions to enhance legal certainty by establishing uniform criteria; in addition to
- Harmonisation and simplification of the rules relating to the need to provide documentary evidence as proof of an intra-Community transport of goods. This is for the purposes of applying the VAT exemption.
The enactment of this bill follows many other EU Member States in implementing the ‘Quick Fixes’. All Member States should have enacted this Directive into law by 1 January 2020.
The Quick Fixes are now in effect in Hungary. You can prepare your business for the Quick Fixes by watching our webinar here.
If any of the above changes affect your business, please contact one of our VAT experts to find out how we can assist you.