Value added tax report (VAT)
Naturally the value added tax report is the most important report that we send to the tax office. The newly registered companies are obliged to report their tax position each month. The monthy tax report is due on the 20th of the coming month. From the charged VAT amounts, the companies are able to deduct the paid VAT, but we have to check several other conditions. The settlement of the monthly VAT is due on the same day as the report by wire transfer. In case the paid VAT to suppliers excceed the VAT that your company charged to customers, then the difference can be reclaimed if the total amount is over HUF 1 milion in case of monthly reports, HUF 250.000 in case of quarterly reports, and HUF 50.000,- in case of yearly reports. In case the reclaimable VAT does not exced this amounts than the claim can be transferred to the coming period. The repayment term is 75 days starting from the reporting date.
The frequency of the reports is overviewed every year and based on the full year position it can be changed by the tax office. In case the payable total VAT exceed HUF 1 million then the company is switched to the monthly system in the mid-year.
The common Hungarian VAT key is 27%, but e.g. books and medicaments are charged with 5% and some food with 18%.
In the VAT report the company is obliged to declare the EU transactions beside the domestic activity.
EU summary report
Under the Hungarian tax number the company can fulfil sales and purchase transactions with other companies located in the EU, this transactions must be included in aggregate in the VAT reports. Beside this a common EU form must be submitted with the breakdown of sales and purchases, services and goods for each tax number. The amounts must be equal in total with the VAT reports.
Environmental tax report
Particularly in case of web shops it can turn out that they import to Hungary goods in wrapping. The wrapping can contain paper, plastic, wood and several other materials that cause pollutions in the environmental. To dispose this materials Hungary applies an environmental tax that gives the fund of this procedure. Besides the wrapping sometimes the goods themselves are the subject of the environmental tax. These are the electronical goods, phones, tablet, watches, and plastic goods. The tax base is the weight of this goods multiplied by the set tax rate. Or office has experience on this field, so we are ready to help our clients in this issue. Too.
Municipality tax, corporate income tax, other taxes
In case the VAT registration is enough for a company, this type of taxes typically are not applied for them as the income taxes are paid in their origin countries. However we are always monitoring them if their activity step over this frame and they have to modify their structure (establish a branch or local company) and pay further taxes beside the mentioned one.
