VAT changes - 1st Janary 2024

  • The tax package includes relief for taxable persons not established in Hungary but established in another EU member state.  Under the bill, non-resident entities will be able to reclaim deductible VAT on their purchases of real property in Hungary under the VAT refund procedure for non-resident taxable persons (ELEKÁFA),provided that they meet the legal criteria.  This provision applies to purchases made after 31 December 2021.
  • The obligation to issue an invoice without delay applies in cases where the buyer has paid the consideration in full by the due date of the invoice.
  • Taxable persons whose VAT return frequency changes will have to file an extraordinary return for the period not yet covered by the return.  This is the legislator's way of avoiding the need to file returns for overlapping periods. 
  • The e-receipt is introduced, the VAT Act provides for the related definitions and calls for the drafting of the related regulation.
  • As a result of EU harmonisation, as of 1 January 2024 the VAT Act will include a regulation on non-reusable products under the mandatory deposit refund scheme: these fees will not be included in the tax base of the supply of goods by principle, unlike refundable products, where the amount can be deducted from the taxable amount when redeemed. (RSM)