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Hungary: VAT “quick fixes” applicable beginning 2020

Hungary: VAT “quick fixes” applicable beginning 2020

The EU harmonization package related to value added tax (VAT)—referred to as the “quick fixes”—will be applicable in Hungary beginning from 1 January 2020.


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The European Commission issued a draft version of its explanatory notes on the interpretation of the new rules. The VAT quick fixes concern the following four changes:

  • Simplified treatment for call-off stock
  • Uniform rules to simplify chain transactions
  • Mandatory VAT identification number to apply the zero VAT rate
  • Simplified proof of intra-Community supplies

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The explanatory notes on the 2020 quick fixes are not yet final, but provide guidelines for adjusting to the new rules as well as guidance for possible practical challenges. 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.

For instance, concerning the proof of transport related to intra-Community supplies, a standardized presumption applicable from 1 January 2020 as regards verification of the transportation of goods would provide new rules that are stricter than the current practice in Hungary. Some believe it might be possible that the Hungarian tax authority could change its practice. Companies that want to maintain a standardized practice in more than one EU Member State may want to consider adjusting their internal rules to the implementing regulation.

Read a November 2019 report prepared by the KPMG member firm in Hungary

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