Small and medium-sized enterprises may expect earlier refunds of value added tax (VAT) as a relief measure in response to the coronavirus (COVID-19) pandemic.
According to a communication from the Hungarian Ministry of Finance, the Ministry has requested that the Hungarian tax authority (NAV) accelerate refunds of VAT claimed by small and medium-sized enterprises (SMEs). Under this relief measure, the tax authority would be expected to refund VAT to SMEs within 30 days (instead of 75 days) of the filing date of the refund claim. For “reliable taxpayers,” a VAT refund could be made within 20 days of the filing of the refund claim.
For this purpose, SMEs are those that employ fewer than 250 people and have either an annual turnover not exceeding the HUF equivalent of €50 million or an annual balance sheet total not exceeding €43 million.
Tax professionals believe that the tax authority may have already accelerated the processing of VAT refunds with regard to returns that have been submitted by 20 April 2020.
Read an April 2020 report prepared by the KPMG member firm in Hungary
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