VAT ledgers return in Hungary extended
At present taxpayers registered in Hungary are required to provide additional information on invoices which include at least 1,000,000 HUF of VAT.
30 June, 2016
This is an obligation for both the taxpayer registered in Hungary issuing such an invoice and the registered taxpayer accepting the invoice, if the acceptor is deducting the input VAT included in the invoice (so-called VAT ledgers). This requirement has to be fulfilled retrospectively together with the VAT return on the so called “M sheet”.
At present 5% of the taxpayers submitting a VAT declaration are involved with this obligation.
According to a new proposal of the Hungarian Government from the 1 January 2017 the limit of this obligation will be lowered to 100,000 HUF meaning that the scale of the taxpayers involved with this obligation will grow significantly.
According to the proposal, all invoices issued by a taxpayer registered in Hungary which include at least 100 000 HUF VAT will have to be included in the summary statement (M sheet) of the issuer. On the receiver’s side, all taxpayers registered in Hungary accepting an invoice which includes at least 100,000 HUF VAT, will have to include this invoice in their summary statement if they are to deduct VAT on the basis of this invoice.
This information about VAT ledgers return has been kindly provided by our Hungarian local contact, Daniel Sztanko from RSM Hungary.