Tax legislation amendments
New rules on “Quick Fixes” related to VAT set to take effect – draft explanatory notes from Commission now available
Last year's EU harmonization package related to VAT, which was dubbed “Quick Fixes”, will be applicable in Hungary from 1 January 2020. The changes concern four areas: 1) the general conditions of VAT exemption for intra-Community supplies of goods, 2) acceptable types of proof of transport, 3) call-off stock simplification, and 4) rules for chain transactions. The new rules were recently mentioned in our Tax Alert issued on the interim and tax amendments set for next year, as the changes of the VAT Act that aim at harmonization of the new rules were already included in the amendment package from this summer. At the finish of the preparation phase the Commission issued a draft version of its explanatory notes on the interpretation of the new rules (“Explanatory notes on the 2020 Quick Fixes”). The document is not yet final, but it provides guidelines for adjusting to the new rules, and guidance for possible practical problems encountered. There is still time to review the internal processes based on the guidelines for the purposes of adjusting to the new rules and implementing potential simplifications.