Small and medium-sized enterprises may expect VAT refund earlier than the norm
According to a communication on the Hungarian Ministry of Finance website, as an economic protection measure in relation to the coronavirus, the Ministry has requested that the Hungarian Tax Authorities (NAV) accelerate the refunding of VAT amounts reclaimed by small and medium-sized enterprises (SMEs).
Thus, NAV should be refunding reclaimed VAT amounts to small and medium-sized enterprises within 30 days instead of the current 75 days. For reliable taxpayers, a refund may even take place within 20 days instead of the normal 30 days.
The aim of swifter refunding of VAT is intended to support Hungary’s small and medium-sized enterprises, i. e. those which employ fewer than 250 people and have either an annual turnover not exceeding the HUF equivalent of EUR 50 million, or an annual balance sheet total not exceeding the HUF equivalent of EUR 43 million.
NAV will likely have already accelerated the processing of VAT reclaim refunds for VAT returns that have been submitted by 20 April 2020.
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